File Photo: Iranian President Masoud Pezeshkian. AFP
Iranian President Masoud Pezeshkian was elected last year on a promise to ease relations with the West and secure the lifting of sanctions that are hurting the economy.
His administration is trying to bring the country into line with the demands of the Financial Action Task Force (FATF), which monitors money laundering and terrorist financing.
Iran was returned to the FATF blacklist of non-cooperative countries in 2020, which includes North Korea and Myanmar.
Along with heavy international sanctions, particularly by the United States, Iran's inclusion on the blacklist has isolated the country's financial sector and severely restricted its access to the international banking system.
"President Masoud Pezeshkian has promulgated... the law on the Islamic Republic of Iran's accession to the International Convention for the Suppression of the Financing of Terrorism (CFT)," Tasnim news agency said on Wednesday.
It is unclear what the immediate economic impact would be if it were removed from the FATF.
Iranian lawmaker Mahdi Shariari said earlier this month that Iran's non-membership in the FATF and CFT had "created difficulties" in trade, including with key allies Russia and China, according to the pro-labour news agency ILNA.
Reformists and moderates in Tehran view compliance with FATF standards as a vital step toward reconnecting with the international banking system and stabilising the economy.
However, international sanctions remain the primary obstacle to Iran's global financial and trade activities.
Local media reported on Tuesday that an Iranian representative attended an FATF meeting in Paris for the first time in six years.
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