Iranian President Masoud Pezeshkian has officially communicated a law on Iran’s accession to the International Convention for the Suppression of the Financing of Terrorism (CFT), marking a significant move in aligning the country with global standards on counter-terrorism financing.

On Tuesday, October 21, Pezeshkian notified relevant executive institutions of the new law, which was conditionally approved by Iran’s Expediency Council earlier this month.

The decision follows the October 1 session of the Expediency Council, where the long-debated convention was given conditional approval. The Council’s spokesperson, Mohsen Dehnavi, clarified that the Parliament had mandated Iran’s adherence to the convention within the framework of its Constitution.

In addition, the Council imposed an extra condition, requiring that all obligations under the CFT must conform not only to the Iranian constitution but also to Iranian domestic laws.

Dehnavi emphasized that if any part of the convention were to contradict domestic regulations, the latter would prevail.

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FATF blacklist and Iran’s economic strategy

The Financial Action Task Force (FATF), headquartered in Paris, blacklisted Iran in 2020 due to its refusal to adopt both the Palermo Convention and the CFT. Concerns had been raised within Iran that joining these conventions might jeopardize the country’s financial independence.

However, in May, the Expediency Council approved the Palermo Convention. The latest ratification of the CFT signals a broader policy shift.

Officials at the Ministry of Economic Affairs and Finance noted that FATF will only begin reconsidering Iran’s status after the country completes the legal procedures for joining the CFT. While the Foreign Ministry has yet to formally notify FATF, the final step involves UN confirmation of Iran’s accession.

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Removing barriers amid sanctions

Iran remains under a severe regime of unilateral US sanctions, complicating its financial interactions with other nations. Economic analysts believe that exiting the FATF blacklist is essential for sustaining trade with countries that oppose both UN and US sanctions on Tehran.

By advancing the legal process under Pezeshkian’s administration, Iran is aiming to reduce financial isolation while retaining control over how international frameworks apply to its legal system.