Thursday, February 18, 2010

Task Force Warns Anew on Terrorist Funding From Iran

This article discusses the failure of Iran to "crack down on money laundering and terrorist financing". This according to the F.A.T.F posses a serious threat to the international financial system. Although they have have begun to take measures against this, many argue that is has been merely symbolic due to other countries taking measures to limit their companies trading with Iran. This is yet another scenario in which Iran has failed to take appropriate actions, after the incident where Iran began enrichment of uranium. While the United States is pressing for harder economic sanctions over their nuclear program, China (who buys a great part of their oil from Iran) has been reluctant to impose these.

According to theory Iran's behavior may be explained by realism. This is because Iran has chosen to pursue their own self interest rather than conforming to what other countries would want them to do. This has created huge tension between the United States and Iran due to there being a security issue in question, while this may have been restricted to Iran's nuclear program, Iran's failure to take appropriate measure against money laundering and terrorist financing have created a greater security dilemma. In this situation the United States may perceive Iran's actions to be a security risk for the United States, however because China is also dependent on Iran for a share of its oil it is rather difficult to predict what the outcome of this may be. One could argue that because the United States economy is so intertwined with that of China at this moment in time it would be unwise of the U.S to put pressure on China to support stronger sanctions against Iran. This is because applying realism once again it would be irrational for China to act against Iran for whom it depends on oil, therefore this situation may put eventually put strain on the U.S-Chinese relations. What is interesting about this article however is that while there were other countries who did not meet the expectations regarding money laundering were not subjected to further sanctions. This may be due to the way in which the United States views Iran as a potential enemy in the near future and as such is looking for ways in which it may balance their development of power. In addition to this one may observe how the international organizations have little power to have countries act in a manner which they see fit, regardless of the issue.

1 comment:

  1. I agree with that Iran from a realist perspective is acting in self-interest. However, the Iranian government is acting independent from the International community and the Iranian people whose votes were tossed in the last election. Suspicion from the US and the rest of the world comes from the lack of legitimacy of Iran's government. Iran's position as a illiberal, illegitimate, and corrupt state combined with their funding of terrorism and nuclear aspirations, create a very negative reaction from most of the world. We do view Iran as our enemy, but there are many reasons for fear and suspicion, while other money-laundering nations might not pose such a threat. Also, sanctions were posed on Somalia, but this has prevented humanitarian aid from entering. Liberal states like the US are more willing to put sanctions on an illiberal state, while China's economic self-interests are their main concern. China is not a liberal state and does not have the same objections to economic trade as the US.

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