Cleric Confirms Iran Government Spent Two-Thirds Of Reserve Fund

The ministry argued that Iran’s 2015 JCPOA nuclear deal with world powers removed all sanctions, and Iran should not be economically penalized by the FATF.

The Financial Action Task Force (FATF) is a global body combating money laundering, terrorist financing, and proliferation of weapons of mass destruction. FATF Recommendations set international standards for anti-money laundering (AML) and counter-terrorist financing (CFT). The Convention against the Financing of Terrorism (CFT) targets terrorism financing, and the Palermo Convention (UNTOC) addresses transnational organized crime, including money laundering and human trafficking. These measures enhance transparency, traceability, and accountability in financial transactions to prevent illicit use of financial systems.

President Raisi administration is skeptical about Iran joining the FATF, as it has kept Iran on the organization's blacklist since February 2018. Raisi contends that focusing on relationships with "neighbors and friendly" nations is a better course of action than the previous administration's “obsession” with membership in the FATF.

The Rouhani administration in 2017 proposed a series of bills to parliament to enact legislation that would bring Iran’s financial regulations in line with those of FATF. However, hardliners prevented final adoption of those laws and Iran remained on the watchdog’s blacklist.

Considering the Raisi administration's shift in approach and the acknowledgment by Mohammad Sadr, a regime insider that there is potential for progress in addressing the FATF issue, especially with the current economic challenges facing the government.,

The letter from the Minister of Economy of Iran was sent at a time when some economists in Iran express skepticism about the efficacy of such correspondence in resolving the FATF issue. To address the problem, it is crucial to first clarify Iran’s position toward the CFT (Counter Financing of Terrorism) and Palermo conventions. Economist Vahid Shaghaghi speaking to media in Tehran emphasized that without approving the Palermo and CFT bills, Iran's request will not be taken seriously. Only after the approval of these two bills can Tehran proceed to write a letter requesting the removal of Iran's name from the blacklist. Even in that case, it may take 2 to 3 years for Iran to be added to the gray list.

Whether these bills are approved or not is a complex matter, because there is a disagreement over the essence of words and terms. Iranian hardliners are concerned that adhering to international standards against money laundering and terrorism financing will interfere with the regime’s efforts to support its militant proxies in the region. The Lebanese Hezbollah, Hamas and others are either officially labeled terrorist or are under severe surveillance as terror operatives. 

The core of the Iranian regime is reluctant to join the FATF and follow international financial standards and conventions, even after the government submitted four proposals in 2017 to incorporate FATF criteria—two of which were rejected by the hardline Guardian Council. While opponents claim that compliance limits support to recognized terrorist groups and exacerbates political tensions, Iranian officials realize the economic difficulties linked to non-adherence. Some argue that these steps must be taken immediately, pointing out that Iran cannot conduct international banking or trade without FATF clearance, even if sanctions are repealed.

The officers singled out the woman, physically assaulted her, and forced her into a police van.

According to videos released on social media, police forces in Shahrak-e Gharb, northwest of the capital Tehran, took the woman out of her vehicle because she was not covering herself in the car.

In recent years, security forces of the regime have detained numerous women and girls across the country for failing to adhere to compulsory hijab, subjecting them to physical abuse and harassment.

On January 3, Iranian woman Roya Heshmati received 74 lashes for defying the Islamic Republic’s mandatory hijab. The execution of the sentence sparked widespread condemnation on social media.

Despite restrictive legislation and the Islamic Republic's efforts to suppress opponents of mandatory hijab, the struggle for women in Iran to secure the right to choose their attire continues.

Since the killing of 22-year-old Mahsa Amini in police custody in September 2022, which ignited the Women, Life, Freedom protests, the act of civil disobedience has become increasingly difficult for the regime to control. Daily images of women without compulsory hijab continue to circulate online.

According to the annual report by HRANA, a human rights organization, in 2023, 44 women were detained for women's rights activism. At least 20 activists have been sentenced to 182 months of imprisonment in addition to fines. Two individuals have also received a sentence of 222 lashes.

The rial fell from 505,00 On January 2 to 530,000 against the US dollar and to 581,000 against the euro on Saturday, as uncertainty grew about a military escalation in the region.

Yemen’s Houthis have been attacking international commercial vessels in the strategically important Red Sea region since mid-November. They began firing missiles and drones and engaged in ship hijacking after Iran’s Supreme Leader Ali Khamenei called for blockading Israel in early November.

The United States and several allied countries formed a naval coalition and warned the Houthis to stop the attacks. After the Houthis dismissed the warnings, US and UK warplanes and warships launched attacks this week against dozens of military targets in Yemen.

The Iranian currency has fallen more than 12-fold since 2018 when the United States withdrew from the JCPOA nuclear deal and imposed oil export and banking sanctions on Tehran. Although illicit oil shipments to China have risen since 2021, the Iranian government still faces severe financial pressures. Annual inflation hovers around 50 percent and rial’s depreciation will push consumer prices higher.

The Biden administration has said that it does not want to engage in military escalation, but the continued Iranian proxy attacks in the region pushed Washington to respond to the Houthis.

So far, Iran's Foreign Ministry Spokesman Nasser Kanaani has provided the most "critical" response to the Western air strikes. He strongly condemned the military action and claimed that they only divert attention from the "crimes" in Gaza and "have no result other than fueling insecurity and instability in the region."

In a reaction that can be evaluated as relatively mild, Iran’s Foreign Minister Hossein Amir-Abdollahian wrote on X that Houthis are committed to maritime and shipping security in the region.

Since mid-November Iran’s Yemeni proxies have launched dozens of missile and drone attacks against international commercial vessels in the Red Sea, after the Supreme Leader in Tehran called for a blockade of goods to Israel.

“Instead of a military strike on Yemen, the White House should immediately end all military and security cooperations with Tel Aviv against the people of Gaza and the West Bank,” stated Amir-Abdollahian, adding that only then, security will be restored across the region.

Iran’s Supreme Leader Ali Khamenei and top IRGC commanders have not yet made any comments on the strikes.

Likewise, state-sponsored media in Iran have also provided limited reporting on the events in Yemen, mostly repeating stereotypical statements made by the Islamic Republic, Houthi officials, and Tehran’s allies in the region.

IRNA, the Iranian state news agency, covered the condemnation of the attacks by Syria, Oman and Iraq’s Hezbollah, a Tehran-backed militant group.

In an article released on Friday, IRNA called the US and UK airstrikes against Houthi targets “the escalation of tensions by cowboys,” warning that the offensives “can further complicate the spiral of instability in the region and increase the risk of expanding the war.”

Other state-sponsored and military-affiliated news agencies in Iran such as Fars, Mehr, and Tasnim, have adopted a similar stance by reiterating the familiar “the enemy will be conquered” rhetoric while avoiding any straightforward pledge regarding the Islamic Republic’s direct interference in support of Houthis.

Tabnak news website, reportedly owned by Mohsen Rezaei, a former IRGC commander, conducted an interview with Heshmatollah Falahatpisheh, a former lawmaker. Falahatpisheh, who once served as the head of the National Security and Foreign Policy Committee of the Iranian parliament, claimed that Saudi Arabia greenlit the recent attacks on Yemeni Houthis.

Citing Saudi Crown Prince Mohammed Bin Salman, Falahatpisheh stressed that Riyadh is still willing to normalize relations with Israel despite the war in Gaza. 

Relatively independent media in Iran, nonetheless, can be said to adopt a more analytical approach toward the escalation of the tensions in the region. KhabarOnline news website predicted on Saturday that the Islamic Republic will not enter the war as it is “mired in complex internal issues” that it has yet to resolve.

The tension and conflict in the Red Sea will continue “on a normal, and not very heavy, scale,” added the report by Khabaronline, further noting that the US, Britain, and NATO will avoid a full-scale, long-term, ground war against Houthis as they believe it will benefit Russia and China.

Meanwhile, Fereydoun Majlesi, a former Iranian diplomat, said that the recent strikes in Yemen were predictable because targeting commercial vessels in the Red Sea affected a large variety of players across the region and the whole world.

“The Red Sea is not just a cargo route for Israel’s port of Eilat, but a transit route for oil and other commodities to go through the Suez Canal,” Majlesi told Rouydad24 news website, adding that US President Joe Biden has been under the pressure of the Republicans to respond to the Houthis.

The most controversial stance among Iran’s relatively independent media belonged to Donya-e-Eqtesad daily which covered the attacks against the Houthis under the headline, “The US Sealed Yemen’s Fate.” Kayhan daily, the regime's most uncompromising media outlet, severely criticized Donya-e-Eqtesad's title, saying it shows that some newspapers that serve the US and NATO's interests are still active in Iran.

The US and UK strikes came two days after the UN Security Council passed a resolution, calling on Yemeni Houthis to stop attacks on shipping in the Red Sea immediately.

Biden issued a veiled threat to the Islamic Republic following the strikes. Asked by a reporter if he had a message for Tehran in the light of the attack, Biden said “I’ve already delivered the message to Iran. They know not to do anything.”

On Thursday, the leader of Iran-backed Houthis warned that the group is ready to respond to any “US aggression.”

We will continue “to fulfil our duties with regard to Palestine” despite the efforts by Washington and London to protect Israeli and Israel-related ships in the region, Abdul-Malik al-Houthi stressed, adding that Houthis will do “what is necessary” in the case of a “direct confrontation” with the US.

The weather development is critical as it comes amid heightened anxieties over a prolonged drought in the country.

Ahmad Shirani, Chief of Information and Traffic Control Center of the Police, confirmed on Saturday that snowfall and rainfall have affected highways in East Azarbaijan, West Azarbaijan, Kordestan, Ardabil, Mazandaran, Alborz, Zanjan, Tehran, Lorestan, Kermanshah, and Hamedan provinces. He urged citizens to avoid unnecessary travel to ensure safety during adverse weather conditions.

The Meteorological Organization issued a red-level warning for heavy snowfall, signaling the potential for blocked transportation routes in four provinces. Hamedan province, in particular, reported significant snowfall in some areas, compounding challenges for residents and authorities.

Prior to the recent weather events, the spokesperson for the water industry, Isa Bozorgzadeh, stated in a press conference on Monday that Iran is experiencing its fourth consecutive dry year, with the country's precipitation in the current water year measured at 48.2 millimeters showing a 40% shortfall from the required 80 millimeters for normal conditions.

The usually wetter northern provinces are also experiencing inadequate rainfall.

Between mid-March and April 2018, extensive flash flooding wreaked havoc in numerous regions of Iran. Over a span of two weeks, Iran faced three significant waves of rain and flooding, causing inundation in at least 26 out of the country's 31 provinces killing at least 70.

It is crucial to note that the floods experienced in 2018 provided only temporary respite, emphasizing the need for a sustained period of precipitation extending over several months to bring substantial relief this year.