Despite discussions around Iran's potential accession to the Financial Action Task Force (FATF), the country must do more to attract foreign investment, the head of the country's chamber of commerce has said.
The Secretary-General of the Iranian Committee of the International Chamber of Commerce (ICC), Mohammad Khazaei, emphasized that Iran's performance in luring foreign investors has been lackluster, and the statistics on foreign investment currently publicized may not be accurate.
In recent years, Iran has been placed on the financial watchdog's 'blacklist' for failing to comply with transparency standards and international conventions aimed at preventing money laundering and the financing of terrorism.
In an interview with an ILNA, Khazaei highlighted that while the quality of financial transfers through banking networks, and issues such as FATF and SWIFT, are significant, they are not the only barriers to foreign investment in Iran.
He noted that Iranian traders often express frustration over difficulties in financial transactions or their inability to receive funds from international banks, forcing them to use exchange offices instead.
FATF identifies problematic and high risk countries in terms of financial dealings. It lists countries, “with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation".
Khazaei explained, "However, issues like FATF, SWIFT, and banking transactions are just one aspect of foreign investment. In attracting foreign investors, various other factors must also be considered and addressed, such as the security of the political environment, judicial and legal security, guarantees provided by governments and investees to foreign investors, and ensuring the return of the principal investment and its profit."
The Financial Action Task Force (FATF) is an international organization established by the G7 member countries to safeguard the international financial system. Its recommendations influence banking policies in most countries and guide businesses aiming to protect their own integrity and reputations. Consequently, Iran's status on the FATF blacklist has had a significant negative impact on its international banking operations.
He pointed out that even if Iran resolves its issues with FATF, it does not guarantee a surge in foreign investments, as other critical obstacles remain. For instance, previous foreign investments in Iran's renewable energy sector have faced challenges. Khazaei recounted instances where the Central Bank of Iran failed to provide the necessary foreign currency to pay agreed profits to investors, or where the national electricity company, Tavanir, could not pay for purchased electricity, highlighting domestic inefficiencies as major deterrents to foreign investment.
The former head of the Investment and Technical and Economic Assistance Organization of Iran stressed the importance of fulfilling commitments to attract foreign investment. "Fulfilling commitments in attracting foreign investment is crucial, and in this regard, the government must implement the guarantees given to foreign investors. One guarantee is that the investor should be able to convert and transfer their profits out of the country," Khazaei stated.
He also emphasized the need for stable laws, political security, social security, and stable exchange rates to attract investment.
Mehdi Hosseini, an energy expert, echoed similar sentiments in another interview with ILNA, critiquing Iran's current diplomatic stance. He argued that Iran's focus should not be exclusively on either the West or the East but should instead maintain a balanced approach.
Iran, under the rule of Ali Khamenei, a staunch anti-West cleric, has strengthened its ties with Russia, providing drones and possibly other weapons for Moscow's war against Ukraine. Additionally, Iran has been attempting to expand economic relations with China; however, Beijing has approached these efforts cautiously due to American economic sanctions on Iran.
The Biden administration, along with European powers, has expressed deep concern over Iran's expanding military ties with Russia. They have stated that any resumption of nuclear talks with Tehran is contingent upon Iran altering its policy of supplying weapons to Moscow in its war on Ukraine.
Hosseini highlighted Russia's weak economy and expressed doubt if Iran can benefit anything by close economic ties with Moscow. He pointed out that despite Iran's attempts to engage with China, no significant investments have materialized, largely due to China's cautious stance given US sanctions on Iran.
Hosseini questioned the efficacy of Iran's current foreign policy, stating, "In all these long years with numerous resolutions passed against us at the UN, where have China and Russia been? Have they vetoed the resolutions?"
He suggested that Iran needs to reassess its policy and strive for a balanced relationship between East and West to effectively attract foreign investment and secure economic growth.
He said that focusing solely on the East, especially Russia and China, is "an unbalanced policy that makes us dependent on countries from which we gain nothing, even if they have positive intentions".
While many Iranian officials and politicians call for a strong retaliation against Israel for Haniyeh’s brazen killing by an explosive projectile while he was sleeping, a few insiders insist that the priority should be to understand how such an operation was possible.
One of these voices is an influential commentator and former senior lawmaker Heshmatollah Falahatpisheh who spoke to Etemad newspaper.
"The most important scenario to consider regarding the assassination of Haniyeh is the scenario of infiltration. This issue needs to be carefully analyzed and evaluated. I hope that the scenarios being presented by some experts on state television and in certain radical media outlets are not being used as an excuse to avoid accountability," Falahatpisheh said.
He is one of a dozen or so commentators allowed to often speak out on government-controlled media about sensitive issues. He often voices opinions critical of some government policies, including its foreign policy.
Iranian security and intelligence officials remained largely silent in the first three days after the assassination about the exact circumstances and what kind of weapon was used. This led to plenty of speculation both in the Iranian and foreign media. The New York Times went as far as claiming that a bomb placed in the guesthouse two month earlier killed Haniyeh, not any projectile fired from the air or the ground.
Finally, on Saturday, the Revolutionary Guard issued a statement rejecting this scenario and announcing that Haniyeh was killed by a small and short range projectile fired from the vicinity of the compound.
However, criticism of security and intelligence agencies continue. Javad Emam, a politician from the Reform Front in a tweet asked President Pezeshkian to act. "The assassination and martyrdom of Ismail Haniyeh on Iranian soil was a warning about the incompetence and inefficiency of certain parts of the country's intelligence and security apparatus."
Emam urged Pezeshkian to make personnel and other changes.
"First, take action to reorganize the intelligence and security forces, and if necessary, reselect them.
Second, where possible, and not in a rushed manner, work towards merging parallel intelligence agencies to prevent further costs to the country due to lack of coordination and the actions of inexperienced personnel.
Third, by establishing truth-finding committees and punishing those at fault, and following the example of several important national cases, work to restore a sense of security in society,” he argued.
Falahatpisheh, in turn, mocked statements by officials who periodically claim they have demolished enemy networks within the country. One such statement by the intelligence minister was made just days before the Haniyeh incident.
"A while ago, one of the officials openly stated that they had uncovered and neutralized all areas of Zionist infiltration in the country. However, incidents like the assassination of Martyr Haniyeh show that there are still specific security vulnerabilities that need to be addressed urgently. Addressing these gaps and deficiencies should be one of the key priorities for the new administration," the former lawmaker stated.
Despite these calls for a serious investigation and holding security officials responsible for the failure to protect a high-level foreign guest, so far there is no sign of action. What occupies most headlines in Iran is the issue of a retaliatory attack against Israel.