Increased banking costs in foreign trade due to non-approval of FATF

According to the Ibna reporter; In recent weeks, following the President’s request to the Supreme Leader to reconsider Iran’s accession to the Special Financial Action Task Force, news of the Supreme Leader’s agreement to extend the review of FATF bills was reported in the media. The issue was also accompanied by the president’s speech on Saturday, and Dr. Rouhani said: The government has submitted four bills, two of which have been approved and two have not been approved yet, and we want the remaining two to be approved.

In this regard, the head of the Iranian Association of Livestock, Poultry and Aquatic Feed Industries and one of our country’s economic activists in an interview with IBNA, pointing out that banking laws in the world are quite clear and transparent, said: Joining the FATF is necessary for Iran’s economic life. But this issue has been commented on by those who do not specialize in it and sometimes talk about it without knowing the special economic conditions of the country. If we want our economy to suffer less from sanctions in the field of international trade and our country’s economic costs to decrease, naturally the FATF can be one of the ways that can reduce the impact of sanctions on us.

Majid Movafeq Ghadiri added: The second point is that not accepting the FATF means self-sanction; In fact, by passing the CFT bill and joining the Financial Action Task Force (FATF), we declare our compliance with international law and eliminate the biggest excuse of the international banking system for not cooperating with Iran.

He added: “We should not behave in such a way that the world is always worried about working with us. At the same time, we should not commit suicide for fear of death. When we do not approve the FATF, it means that we accept that Iran is included in the FATF blacklist, which not only will the above measures be further intensified, but also the monetary and financial institutions of the world will not be willing to make financial transactions with suspicion of connection with Iran.

The economic activist stressed: Iran should be able to interact with global banks and we should not face self-sanctions. At the same time, all these events cause the country’s economy and people to suffer. Why? Because the price of currency, bank costs and the cost of goods entering the country increase.

The member of the Iranian Chamber of Deputies continued: For countries that are in economic and political stability, non-cooperation with the FATF has resulted in nothing but isolation of the country and increased problems around the world for passport holders of those countries. In relation to Iran, these consequences will be twofold; Because Iran’s economy is not in a normal situation; Unprecedented economic instability and the return of sanctions against Iran, along with financial isolation due to non-cooperation with the Financial Action Task Force, will bring a new shock to the country that the economic strength, especially in the field of imports, will not be tolerated.

The head of the Iranian Association of Livestock, Poultry and Aquatic Feed Industries, emphasizing that the most affected area is the livestock inputs sector, said: “This year, Iran should import about $ 6 billion worth of livestock inputs for livestock inputs.” In fact, most of the country’s currency is spent on importing these items. If this figure can lead to the import of livestock inputs to the country at a lower cost. Today, the average price of livestock inputs entering the country is 15% more expensive than Iran’s neighboring countries, which is directly related to banking and FATF sanctions.

He added: “Naturally, if the country wants to reduce the cost of imported goods and, of course, the cost of its products, one of the measures is to approve the FATF bills.” If we approve the FATF, we will give the green light to the whole world not to worry about trade with Iran. For this reason, I consider the positive effects of Iran’s presence in the FATF to be greater than its negative consequences.