Criminalisation of terrorism financing in Iranian law
| Pages | 231-244 |
| DOI | https://doi.org/10.1108/JFC-12-2018-0133 |
| Published date | 22 January 2020 |
| Date | 22 January 2020 |
| Author | Zeynab Malakoutikhah |
| Subject Matter | Financial risk/company failure,Financial crime,Accounting & Finance |
Criminalisation of terrorism
financing in Iranian law
Zeynab Malakoutikhah
School of Law, University of Leeds, Leeds, UK
Abstract
Purpose –The purpose of this study is to demonstrate that to what extentthe Iranian criminalisation of
terrorism financing meetsthe international standardsof counter-terrorismfinancing regime, particularly the
Financing Conventionand the Financial Action Task Force (FATF) Recommendations, and what is the main
impediment for Iran to integrateat the international level to combat terrorism financing. Also, it triesto rate
the Iranian criminalisationof terrorism financing in accordance with the FATF technicalcompliance rating.
Design/methodology/approach –This subject is analysedfrom an Iranian perspective by undertaking
fieldwork through collecting documents in Iran and using the official documents, statements and laws,
particularly the Iranian Law of Combating Financing of Terrorism (2018) from both Persian and English
sources.
Findings –Iran’sterrorismfinancing offence is not completely in line with international counter-
terrorism financing regime because of an exemption for the struggle of individuals, nations and national
liberation movements with the aim of countering domination, foreign occupation, colonisation and
racism. The Iranian support for national liberation movements is derived from the Constitutional Law
that requires Iran supports the struggles of the oppressed for their rights against the oppressors
anywhere in the world. As a result, the FATF Recommendation 5 (criminalisation of terrorism
financing) would be rated partially compliant.
Originality/value –No article exists specifically on this research field. To the author’s knowledge, this
paper, for the first time, examines the Iranian criminalisation of terrorism financing. It rates the
criminalisation (Recommendation 5) based on the FATF technical compliance rating because no mutual
evaluation has been conductedto date. The paper is useful for academicians, law enforcement, policymakers,
legislatorsand researchers.
Keywords Iran, Criminalization, Terrorism financing, National liberation movements
Paper type Research paper
Introduction
Before the 9/11 attack, counter-terrorism financing (CTF) regime was poorly enforced and
only four countries, i.e. Botswana, Sri Lanka, the United Kingdom, and Uzbekistan, had
ratified the International Convention for the Suppression of Financing of Terrorism (1999)
(“the Financing Convention”).This trend changed after the 9/11 attacks, mostly through the
interference of the United Nations Security Council Resolution (UNSCR) 1373; a large
number of states joined the FinancingConvention (188) and the Financial Action Task Force
(FATF) Recommendations(FATF, 2012). However, Iran is a unique case because it has been
accused of the financial and military support for some non-state militant actors such as
Hezbollah, Hamas and the Palestinian Islamic Jihad (PIJ), all of which are internationally
designated as terrorist groups (Levitt,2007, 2006;Byman, 2008). Iran considered its
implementationof the UNSCR 1373 as a national responsibility(UNSC, 2001b), but it has not
ratified the Financing Convention, although the government presented the Bill to Join the
The author would like to thank Professor Clive Walker for his support and comment on this paper.
Terrorism
financing
231
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 231-244
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-12-2018-0133
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