Iran International
Iranian President Masoud Pezeshkian's call for accession to the international money laundering watchdog FATF conventions during his first press conference has ignited a fresh wave of opposition among Islamic Republic’s loyalists.
Pezeshkian reiterated that joining the Financial Action Task Force (FATF), reviving the 2015 nuclear deal (JCPOA), and improving international relations are crucial for removing barriers to foreign investment and trade. He emphasized that these steps are essential for achieving the goals outlined in Iran's 20-year Vision Plan (2005-2025). Pezeshkian also pledged to formally request that the Expediency Council prioritize FATF accession on its agenda.
Without accession to several international financial conventions demanded by FATF, Iran cannot have full access to global banking, normal trade relations and investments by large global companies.
In 2018, the Parliament approved two pieces of legislation that the FATF required to take Iran off of its black list. The hardline Constitutional watchdog, the Guardian Council, however, rejected the legislation and the issue was referred for arbitration to the Expediency Council which has has not acted to date. Two other laws were never approved by parliament.
Iran has been on the money-laundering watchdog’s blacklist since February 2020.
Hardliners, ultra-hardliners, and their supporters in the parliament, media, and across social media platforms have reacted forcefully to Pezeshkian’s remarks. A political analyst in Tehran told Iran International that powerful individuals whose financial interests will suffer from transparency are the main driving force behind the opposition to accession to FATF. They also prefer economic sanctions to remain in place because as regime insiders they make money by circumventing trade and banking restrictions.
Iranian media and politicians often refer to individuals who make huge profits from selling Iran's oil in international black markets as “profiteers of sanctions”. The extent of such dealings, and profits involved, was revealed in 2013 when business magnate Babak Zanjani was arrested for withholding at least $2.7 billion of the proceeds of sanctioned oil sales on behalf of the Oil Ministry.
Authorities claim Zanjani whose death sentence was commuted to twenty years in prison in April “with the approval of the Supreme Leader” has returned the embezzled money.
“Khamenei did initially oppose Rouhani’s insistence on the necessity of accession to the FATF but without his consent, the parliament could not have passed the two pieces of legislation in 2018 despite the extreme opposition of hardliners,” the political analyst said.
He also pointed out that at the time, Parliament Speaker Ali Larijani told lawmakers expressly that there was no objection from the Leader’s Office to the controversial legislation.
“Oligarchs like Zanjani are now many. Bloomberg’s recent revelation of the role that Hossein Shamkhani is now playing as the top seller of sanctioned oil in global markets is very telling of the extent of these individual’s influence,” he added.
Ali Shamkhani, Hossein Shamkhani’s father, served as Iran's National Security Council for almost a decade until May 2023.
In a speech at the Parliament on September 17, Mahmoud Nabavian, an ultra-hardliner Paydari Party lawmaker, claimed that the international money-laundering watchdog requires Iran to “announce” that the “Qods Force's, [slain commander Qasem] Soleimani, the people of Gaza and Hamas, Yemen and all resistance forces are terrorists.”
Nabavian, an ally of Saeed Jalili who ran against Pezeshkian in the recent elections also insisted that FATF accession means that information on all of Iran's financial activities and trade should be provided to the US and other countries.
“This means identification and full obstruction of all the trade paths of the Iranian nation,” he said.
Speaking to Mehr news agency Tuesday, Mostafa Mirsalim, a hardliner politician and member of the Expediency Council, contended that joining the FATF would be more damaging than not joining it unless the US, which has listed the IRGC and “resistance front” as terrorist organizations, lifts its sanctions and “ends its hostility” with the Islamic Republic.
In one of the election debates in June, Mostafa Pourmohammadi, a conservative candidate, alleged that then secretary of the Supreme National Security Council (SNSC), Saeed Jalili, had been the major force behind the rejection of accession to financial conventions since 2016.
Pezeshkian’s hardliner predecessor, Ebrahim Raisi, in whose government Jalili wielded much influence from behind the scenes also criticized the Rouhani administration, claiming that trade problems were better solved by relying on “neighbors and friendly countries” including China and Russia, and scraping the use of the dollar.
While also emphasizing trade and good relations with “neighbors and friends”, Pezeshkian and his government appear to be determined about joining the FATF.
Most Iranians, battered by years of 40% annual inflation, now spend half or more of their income on rent alone. This means that an ordinary worker earning $200 a month has less than $100 for food and all the other essentials.
This week, Mohammad Saleh Shokoohi Bidehendi, a faculty member at the Iran University of Science and Technology's School of Architecture and Urban Planning, said: "In global rankings, Iran is among countries where housing prices are disproportionately high compared to average incomes."
Speaking at a meeting titled 'Programmatic Solutions for Housing Provision in Iran', organized by the Center for Iran’s Development and Foresight Studies, he added: "This makes it extremely difficult for many families to afford a home."
He noted that housing costs consume 37% of household expenses in urban areas, about 50% in Tehran Province, and over 55% in the city of Tehran. "This situation has placed Iran seventh worldwide in terms of housing affordability relative to household income," he added.
While he did not specify the source of the figures, they match closely with global data. According to Numbeo's mid-2024 reports, Tehran was ranked as the fourth most expensive city globally based on the House Price to Income (HPI) ratio, while Iran stands as the twelfth most expensive country. The HPI compares the median house price to the median household income, highlighting the significant gap between property costs and average earnings.
In July, Iranian media reported that ordinary citizens are now confronting the grim reality of a century-long wait to achieve homeownership as housing prices continue to soar. By June, the average price per square meter in the capital had surged to approximately 860 million rials (around $1,475).
For working-class Iranians earning an average of $200 per month, local estimates suggest that it would take over a century — if not longer — for a wage earner to afford even the smallest residential unit.
Economic sanctions, high inflation rates, and a surge in real estate investment as a hedge against currency devaluation have driven property prices upward. The economic crisis has also forced at least one third of Iranians below the poverty line.
Moreover, data from the Central Bank of Iran indicates that the average price per square meter of residential units in Tehran has skyrocketed in recent years, far outpacing wage growth. The disparity has led to declining home ownership rates, forcing many households to allocate a substantial portion of their income to rent.
Fardin Yazdani, an expert in urban and housing economics and director of the comprehensive housing plan review studies, noted during the meeting that after 2018, the economic landscape in Iran shifted dramatically.
Due to sanctions and a surge in demand for investment in land and housing - driven by the need to safeguard the value of financial assets - Investment shifted away from the production sector. This exacerbated negative economic growth, culminating in stagflation within the housing market. Iran's currency has lost its value almost 15-fold since early 2018.
It's a peculiar paradox in the housing market: while genuine demand shrinks because families can't afford to buy homes, prices continue their upward march, because people consider their real estate as the only guarantee against inflation. Wealthy investors, eager to preserve the value of their assets amid economic uncertainty, are snapping up properties to hedge against inflation.
It has made real estate — much like gold and foreign currencies — a favored capital investment in Iran. Many are attempting to safeguard their assets from rapid currency depreciation by purchasing houses and apartments. As a result, real estate prices continue to climb in tandem with the escalating value of the dollar.
Experts say it is critical for the government to implement effective tax regulations to prevent land from becoming a speculative asset. A comprehensive national land and housing plan is also needed, along with restructuring the national budgeting system.
The ongoing economic crisis has eroded public confidence, reflected recently by historically low voter turnout in elections. Experts warn that economic turmoil is likely to worsen, with no end in sight to Iran's confrontational nuclear and regional policies.
The announcement came during his online lecture on Sunday, marking the end of his 13-year tenure as a religious lecturer that could help make him an Ayatollah one day..
In a video statement, Khamenei said that the decision was personal, adding, “This has nothing to do with political matters and is an issue between me and God.” He further noted that he had only informed two individuals about the decision and that even his father, Ali Khamenei, was unaware of his decision.
Iranian media reported that approximately 700 students were enrolled in Mojtaba Khamenei's class, which focused on Islamic jurisprudence.
Speculation about the suspension has circulated widely, with some attributing the move to concerns over his security, given his status as a potential successor to his father. For years, the younger Khamenei has been seen as a potential successor to his father, sparking widespread debate among Iranians and online, despite limited acknowledgment or discussion from Iranian officials.
In April 2023, a leaked document reportedly from a confidential meeting between senior IRGC commanders and the Supreme Leader suggested that Mojtaba Khamenei was actively pursuing the succession project. The document also implied that Mojtaba had begun influencing high-level appointments, bypassing figures such as Ebrahim Raisi, a former frontrunner for leadership.
The theory of Mojtaba Khamenei’s succession gained further attention following the death of Ebrahim Raisi in a helicopter crash earlier this year.
Sadegh Mohammadi, Vice President of the General Assembly of the Society of Seminary Teachers of Qom, described Mojtaba Khamenei as a “jurisprudent and Muslim scholar” in March. He also suggested that Mojtaba could be “one of the future leadership candidates.”
Concerns over a hereditary transfer of power have been voiced by critics within Iran, including Mir-Hossein Mousavi, a leader of the dissident Green Movement of 2010s. In a letter from August 2022, Mousavi warned of the “hereditary leadership in Iran,” citing ongoing rumors that Mojtaba Khamenei was being groomed to succeed his father. He questioned why Iranian authorities had never publicly denied these claims, "if they are not thinking of Mojtaba’s rise to the throne?””
Mojtaba Khamenei, now 55 years old, is the son-in-law of Gholam-Ali Haddad-Adel, a former Speaker of the Iranian Parliament. His name became more prominent in discussions of succession after Mehdi Karroubi, another leader of the Green Movement, directly accused him of playing a critical role in securing Mahmoud Ahmadinejad’s victory in the 2005 presidential election.
In 2009, following the disputed presidential election, Mojtaba Khamenei faced accusations of orchestrating electoral fraud. Protests erupted across the country, marking the birth of the Green Movement, with demonstrators chanting slogans against him.
The Shabnameh X account, which claims to bypass the censorship of the Islamic Republic and reflect the voice of the Iranian people, speculated that the suspension of Mojtaba’s lectures might signal that he is no longer being groomed as the next leader. An Iranian political analyst, speaking anonymously, told Iran International that if Mojtaba Khamenei is halting his lectures, it could indicate disagreements with his father.
The account stated, "After orchestrating the election by installing Masoud Pezeshkian, a so-called reformist, as president, Khamenei is now signaling that his second son, Mojtaba, is no longer in the running for leadership by suspending Mojtaba’s 13-year-long jurisprudence class."
Among the entourage are Masoud Pezeshkian’s two sons, daughter, and son-in-law.
Reports from outlets such as Modara and Tejarat News in Tehran indicate that in addition to close family members, several individuals linked to Elias Hazrati, the head of the government’s information council, also joined Pezeshkian on the trip.
Pezeshkian had previously faced public backlash after it was revealed that his son-in-law, Hassan Majidi, accompanied him on a government trip to Iraq. It was later revealed that Pezeshkian’s son and daughter had also been part of that delegation.
Iranian media reported last week that Majidi had since been appointed as the executive assistant to the head of the president’s office, raising additional concerns about nepotism within the government.
Modara’s report further highlighted the ongoing secrecy surrounding Pezeshkian's New York delegation, noting: “In Iran, the number of travelers to New York and the president's companions has always been controversial, but no head of state has been willing to transparently disclose the names of their companions on this trip.”
Among the officials confirmed to be traveling with Pezeshkian are Abbas Araghchi, the foreign minister; Mohammad Javad Zarif, deputy for strategic affairs; Zahra Behrouz Azar, deputy for women's affairs; Mehdi Sanaei, political deputy of the president’s office; and Mohammad Jafar Ghaempanah, the executive deputy.
The Trump administration banned Zarif from visiting the United States in 2019, when Washington was pursuing 'maximum pressure' on Tehran.
The presence of government officials' children and family members at state events has long been a point of contention in Iranian politics. On August 28, at the ceremony introducing Mohammad Atabak as the new Minister of Industry, Mine, and Trade, Hamid Reza Aref, the eldest son of First Vice President Mohammad Reza Aref, was seen attending, provoking widespread criticism.
As far back as 2012, during then-President Mahmoud Ahmadinejad’s trip to New York, approximately 140 people accompanied him. Mohammad Ali Pourmokhtar, a member of Iran’s parliament, revealed that many of the travelers were "family members and relatives of government officials."
Iran's latest president, Pezeshkian, stated that his goal for the visit to UNGA is to "neutralize the atmosphere" surrounding the Islamic Republic abroad. Iran has in the last two years been sanctioned for terror activities abroad, support for Russia's war on Ukraine, human rights abuses at home and its ongoing nuclear program.
Speaking on Sunday before his departure, he suggested a desire to win over the Iranian diaspora of whom there are over half a million originally born in Iran. "We can exchange views with Iranians there and neutralize the atmosphere they have created outside the country.
"The reality is not what they present through television, tribunes, or in gatherings," he said. Iran has seen massive activism and protests from its community around the US in a bid to garner international support to overthrow the government, gaining pace since the 2022 uprising.
In a bid to overturn the massively negative perceptions, Pezeshkian said: "Our Iran is much safer and freer than they [foreign media] have depicted."
In an interview with the Entekhab website, Fadahossein Maleki, a member of Iranian parliament's National Security and Foreign Policy Committee, said on Sunday that "the interviews that Pezeshkian will conduct with Western media during his trip to New York will impact the US elections."
Pezeshkian also said that he intends to speak with other heads of state to "create peace and security in the world". It comes one year after the US designated Iran the world's number one state sponsor of terrorism.
Abbas Araghchi, Iran's Foreign Minister, who had already departed for New York ahead of Pezeshkian, said his meetings on the sidelines of the General Assembly on Sunday would center around the conflict in Gaza between Israel and Iran-backed Hamas.
Araghchi said that on the first day, he held "serious discussions" with the foreign ministers of Kuwait and Bahrain, and the Secretary-General of the Gulf Cooperation Council regarding "regional stability and security, the Palestinian issue, Israel's crimes in Gaza and southern Lebanon, the dangers Israeli policies pose to all countries, and the need to counter these policies."
On September 19, Reuters, citing three Iranian officials, reported that Pezeshkian, on his first trip to the West since his election, would carry a message signaling that "Tehran is open to diplomacy", while emphasizing that Tehran will not bow to pressure.
The report predicted that Iranian and European officials at the UN would explore ways to return to diplomacy regarding the Islamic Republic's nuclear program while seeking to reduce tensions with Israel. However, there has been no sign indicating European or US interest in reopening negotiations.
In their initial statements about the trip, neither Araghchi nor Pezeshkian mentioned the nuclear issue in spite of Iran having accelerated its nuclear program and obstructed UN inspectors.
According to the latest confidential reports from the International Atomic Energy Agency, the Islamic Republic continues its high-enrichment uranium production, which could be used for building nuclear weapons.
France, the UK, and Germany, known as the European Troika, have increased pressure on Tehran to return to negotiations.
On September 10, these countries, along with the US, imposed new sanctions on the Islamic Republic due to its supply of ballistic missiles to Russia, an issue which has led to the deterioration of relations between Iran and the West, in addition to Iran's support for its regional proxies.
Since the war in Gaza, Iran's proxies have launched attacks on Israel from countries including Yemen, Syria and Iraq, in addition to Yemen's Houthis imposing a maritime blockade on the Red Sea region which has massively disrupted global shipping.
