Iran's parliament voted Sunday to join a global convention to cut off terror financing, in the hope of avoiding further international sanctions as the 2015 nuclear accord, which provided sanctions relief, unravels.
Parliament Speaker Ali Larijani said 143 out of 268 lawmakers voted to join the "Combating the Financing of Terrorism" convention. The bill must be ratified by the Guardian Council, a constitutional authority, to become law.
Iran has long backed the Lebanese militant faction Hezbollah as well as a number of armed Palestinian groups that Western countries classify as terrorist organizations. Joining the CFT is unlikely to prevent Iran from continuing to support such groups.
U.S. President Donald Trump withdrew the United States from the nuclear deal with world powers in May and has vowed to ramp up sanctions unless Iran dramatically changes its policies, including halting its support for regional terrorist groups.
By joining the CFT, Iran would be required to comply with some guidelines set by the Financial Action Task Force, an intergovernmental organization that targets money laundering around the world.
Hard-liners in Iran opposed the bill, saying it would erode the country's sovereignty, and hundreds of students protested the bill outside the Iranian parliament on Sunday. Others saw the bill as a positive gesture toward European countries as they try to salvage the nuclear accord.
Foreign Minister Mohammad Javad Zarif called Sunday's vote a "historic decision" that would make it easier for Russia and China – which also signed the nuclear accord – to continue doing business with Iran as the U.S. moves to reimpose sanctions on it.
In an effort to pressure Iran to stop financing terrorism and abandon its ballistic missile program, the U.S. has, in addition to reimposing sanctions, threatened the international community that it will penalize countries that deal with Iran.
"The parliament faces a historic decision … to act along the interests of the nation and take away any future excuses from the United States [to pressure Iran]," Zarif told parliament before the vote, which was broadcast on state radio.
Foreign businesses say legislation that includes FATF guidelines is essential if they are to increase investment.
