Iran Ratifies UN Treaty to Combat Terror Financing Amid FATF Blacklist Pressure

Tehran, October 22, 2025 

• Iran has officially ratified the International Convention for the Suppression of the Financing of Terrorism (CFT Treaty) , marking a major step toward meeting Financial Action Task Force (FATF) standards. The move, led by President Masoud Pezeshkian’s reformist government, aims to ease economic isolation and restore access to the global banking system.

Move Toward Financial Transparency:

• Iran has been on the FATF blacklist since 2020 , restricting its international transactions and investment flows. Ratifying the CFT Treaty aligns Iran with global norms on anti-terror financing and reflects efforts to rebuild ties with the West and strengthen partnerships with Russia and China .

About the CFT Treaty:

• Adopted by the UN in 1999 and in force since 2002 , the treaty requires nations to:

  • Criminalize terrorism financing in domestic law.

  • Cooperate internationally in investigations and prosecutions.

  • Share evidence and intelligence related to terror financing.

  • Reject bank secrecy as grounds for denying legal assistance.

Domestic Divide:

• The decision has sparked resistance from conservative factions , who fear exposing Iran’s financial and security operations. Supporters argue the ratification is vital for reviving trade , attracting foreign investment , and reducing sanctions pressure .

Key Facts:

• FATF , founded by the G7 in 1989 , sets global anti-money laundering and counter-terror financing standards.

• Iran , North Korea , and Myanmar remain on the FATF blacklist.

• Countries on the list face severe banking restrictions and limited global financial access.

Iran’s ratification of the CFT Treaty signals a potential shift toward greater economic openness and international cooperation , as Tehran seeks to balance domestic politics with global financial integration.