Iran hardliners push back on FATF accession citing sanctions risk

Over 150 hardline Iranian lawmakers urged a key decision-making body on Tuesday to block Iran’s accession to the Countering the Financing of Terrorism and Palermo conventions, two key components of the Financial Action Task Force (FATF) reform package.

In a letter published Tuesday addressed to the chair of the Expediency Council Sadeq Amoli Larijani, they warned against endorsing the bills “until the threat of the snapback mechanism is fully lifted.”

Snapback refers to the automatic reimposition of UN sanctions under the 2015 nuclear deal framework. The UN snapback mechanism is expected to expire in October 2025—unless a party triggers it beforehand.

Their appeal signals deep resistance in conservative circles to legislation seen as necessary to remove Iran from the FATF blacklist.

The CFT targets terrorism financing while the Palermo convention tackles transnational crime. Their passage has stalled since parliament passed them with reservations.

Larijani recently suggested conditional approval was possible, citing parliamentary safeguards. But MPs insisted even a conditional endorsement could expose Iran to economic penalties.