The report asserts that while FATF membership can enhance economic and financial conditions, leading to increased financial transparency, improved international relations, and greater foreign investment, it does not grant FATF access to countries' financial information. Instead, FATF's primary function is to establish frameworks and standards aimed at combating money laundering and terrorist financing, without exercising direct oversight over individual countries' financial activities.

To fully leverage the advantages of FATF membership, Iran must address both domestic and international challenges and implement necessary reforms. Compliance with FATF standards is noted to significantly influence the ability of banks to secure credit. Enhanced transparency, reduced credit risk, and bolstered trust in financial systems are all critical factors that facilitate the credit process, lower financial costs, improve transaction security, and ensure the quality of goods and services procured.

The report emphasizes that Iran faces considerable challenges in combating money laundering and terrorist financing as a key player in West Asia. Since 2009, FATF has placed Iran on its list of jurisdictions requiring countermeasures due to its failure to align with global standards. Consequently, FATF has urged all jurisdictions to implement effective measures to safeguard their financial sectors from risks associated with Iran.

This designation has adversely affected Iran's banking relationships with other nations and hampered foreign investment, thereby stunting economic development. Although Iran has made strides toward joining FATF and amending its domestic laws, various legal and political hurdles continue to obstruct its path to full membership.

The Iranian Chamber's research also discusses internal political dynamics regarding FATF membership. Some factions express concerns that joining FATF may compromise Iran's financial sovereignty, while others argue that non-membership perpetuates sanctions and economic restrictions detrimental to Iran's trade relations.

Impact on Bank Credit Access

The research outlines how Iran's potential FATF membership could facilitate access to bank credit by reducing credit risk and associated costs. Compliance with FATF standards would enable banks to establish robust systems for identifying and managing credit risk through processes such as Know Your Customer (KYC) protocols. These measures would allow banks to detect suspicious activities earlier, thereby minimizing cooperation with high-risk clients. Moreover, adherence to FATF standards fosters increased trust between banks and their customers. This trust can lead to lower interest rates and transaction fees as banks become more confident in their understanding of customer profiles. Enhanced transparency in tax systems further accelerates banks' responses to credit requests, benefiting both businesses and individuals.

Improved Credit Ratings

Countries that comply with FATF recommendations typically enjoy better international credit ratings from agencies like Moody's and S&P. Higher credit ratings enable access to loans at lower interest rates, reducing financing costs and potentially attracting foreign investments.

Enhancing Transaction Security

Compliance with FATF standards necessitates that banks implement comprehensive monitoring systems for identifying suspicious activity. Such systems enhance transaction security by minimizing the risk of financial misconduct, thus increasing confidence among customers and other banks in the financial ecosystem.When buyers utilize bank credits compliant with FATF guidelines, sellers benefit from assurances regarding timely payments. This regulatory framework fosters stronger business relationships and increases transaction volumes.

Assurance of Quality Goods

By adhering to FATF standards, banks can ensure the legitimacy of transactions and the quality of goods purchased. Rigorous monitoring processes allow banks to engage only with reputable sellers capable of delivering high-quality products. This diligence not only enhances customer trust but also reduces disputes related to transactions.

Facilitating International Cooperation

Compliance with FATF recommendations enhances international trust among banks and financial institutions across borders. This cooperation streamlines access to international credit lines and foreign financial resources, ultimately boosting international trade volumes.

Economic Development

The international cooperation fostered by adherence to FATF standards can significantly contribute to economic development within countries. Improved access to international credit facilitates business growth and economic projects while enhancing transparency reduces corruption risks—creating a more conducive environment for attracting foreign investments. This synergy can lead to sustainable economic growth and job creation across various sectors.

In a part of its research, the Iran Chamber discussed the challenges of the Islamic Republic in interacting with the FATF and wrote: On the one hand, some political groups and domestic entities are worried that joining the FATF could mean accepting international supervision of the country's financial and economic system and affect the independence of Iran. Others believe that non-membership in FATF will lead to the continuation of sanctions and economic restrictions that will disrupt Iran's economic development and trade relations with the world.

Impact on opening of bank's credit

 Another part of this research highlights the effect of Iran's membership in FATF on the opening of bank credit and, for example, highlights the reduction of credit risk and cost reduction.

According to this report, complying with FATF standards helps banks to create stronger systems for identifying and managing credit risk. These standards include Know Your Customer (KYC) processes and continuous review of customers' financial activities. By implementing these processes, banks can identify suspicious activities earlier and avoid cooperation with high-risk customers.

These measures make banks provide facilities and credits with more confidence and the possibility of financial violations and decrease money laundering. Also, reducing credit risk makes banks spend less money on managing risks and covering possible losses.

Reducing financial costs is another expected result. Accordingly, compliance with the FATF Recommendations

 leads to increased trust between banks and customers. This trust makes banks provide credit facilities to their customers with more confidence. Increased trust helps to reduce interest rates and transaction fees because banks know that credit risk is reduced and they know their customers better. Also, with more transparent and accurate tax systems and reports, banks can respond to credit requests more quickly and efficiently, which benefits businesses and individuals.

 Improving credit rating

 Countries that implement FATF's recommendations enjoy a better credit rating at the international level. These ratings are done by international credit institutions such as Moody's and S&P and indicate the level of trust in a country's financial system. By increasing the credit rating, banks, and financial institutions can receive loans and facilities with lower interest rates, which leads to a reduction in financing costs. This credit rating improvement can also boost foreign investments.

Increasing the security of transactions

FATF standards require banks to have detailed systems for identifying Suspicious Activity Reports (SAR). These systems include methods for monitoring financial transactions, identifying unusual patterns, and immediately reporting suspicious transactions to the relevant establishments.

 By using these systems, banks can prevent illegal activities. Increasing the security of transactions means reducing the possibility of misuse of financial systems, which increases the trust of customers and other banks in the financial system.

When buyers use bank credits, sellers have more confidence in timely and correct payments. This assurance is due to the regulatory systems and financial transparency provided as a result of applying FATF recommendations.

Sellers can offer their goods and services with more confidence knowing that the transactions are under FATF supervision. This assurance makes sellers more willing to cooperate with customers who use valid bank credits, which in turn helps to improve business relations and increase the volume of transactions.

Guarantee quality and authenticity of goods

By complying with FATF standards, banks can ensure the validity of transactions of the transaction and the quality of the purchased goods. This is due to strict monitoring of transactions and providing financial facilities to reputable sellers. Banks usually work with partners who have high credit financially and commercially and capable of providing goods and services with high quality. This cooperation with reliable customers assures the customers about the quality of the goods and services they buy.

At the same time, FATF standards require banks to carefully review and monitor transactions. This includes identifying and verifying the identity of customers, reviewing their transaction history, and monitoring financial patterns. Monitoring closely makes transactions to be done accurately and to prevent financial violations. The accuracy of the transactions increases the trust of the customers in the banking system, this trust in turn leads to the opening of more credit. Also, the authenticity of transactions helps to reduce financial disputes and legal problems, which is beneficial for all parties involved in the transaction.

Facilitates international cooperation

Compliance with FATF recommendations by banks and countries increases international trust and cooperation. Banks and financial institutions of different countries cooperate more confidently with banks and customers who are under the supervision of FATF. These collaborations lead to facilitating the provision of international credit lines and access to foreign financial resources. By complying with FATF, banks and financial entities can easily use international financial services, which helps to increase the volume of international trade and investments.

Economic development

International cooperation, which results from compliance with FATF standards, can help the economic development of countries. Increasing access to international credit and financial facilities facilitates the growth and development of businesses and economic projects. Compliance with these recommendations also increases transparency and reduces financial corruption, which in turn helps to improve the business environment and attract foreign investment. By increasing investments and international cooperation, countries can achieve sustainable economic growth and create new job opportunities.