The Central Bank of Iran on Sunday announced rules for independent anti-money laundering (AML) and counterterrorist financing department for all banks and credit institutions.
As per a press release published on central bank's website,
Banks and credit institutions henceforth must set up the department as an independent unit that must be included in the organizational chart of banks as a first-in-command operational unit.
The structure of the AML/CFT unit must be first approved by the bank board of directors and after that be sent to the CBI.
Banks are also required to introduce their director for the AML/CFT unit to the Ministry of Economy's Financial Intelligence Unit. The FIU will assess the eligibility of the candidate before he can take the job.
In 2019, the CBI in an executive bylaw made it mandatory for lenders to create special units to monitor potential money laundering. To manage risks emanating from suspected money laundering and terrorism funding, banks are obliged to critically review and identify risks before giving loans or credit.
Anti-money laundering departments are obliged to oversee all transactions conducted by banks and report dodgy deals and violations of AML rules to the CBI and other relevant bodies.
The central bank again asked bank account holders to be cautious about delegating access to their bank accounts to others as "recent CBI studies shows that rented bank accounts form a major portion of suspicious transactions."
Last week, the CBI said it had detected and blocked several “unusual transactions” and fired managers of the bank branches involved.
“The regulator found uncommon transactions strongly indicating illegal trade and devoid of clear legal and economic purpose,” the CBI said. As is often the case, it did not elaborate or name names.
Through “smart monitoring” the CBI said it found that most illegal transactions were undertaken via rented bank accounts, warning account owners that they are and will be held responsible for any misdoings.
Over the past two years the CBI has taken measures to improve supervision over banks and their performance. Among other things, the regulator wants to ensure that AML laws are upheld, curb tax evasion and curtail speculation in the financial markets, namely gold and foreign exchange.
Due to money laundering concerns, the regulator last year barred banks from processing payment requests of customers lacking full ID information in the bank data center.
The amended AML Law was proposed by former President Hassan Rouhani in early 2018, after it was studied by key entities, namely the specialized committees in government, parliament, the constitutional watchdog Guardians Council plus the Expediency Council, the top arbiter.
The law was first ratified in February 2008 and during a decade of implementation it became apparent that it needed amendments.
In August 2018, amendments to the CFT (Combating Financing of Terrorism) Law of the Islamic Republic of Iran were approved by the Guardians Council and notified to the relevant organizations and ministries.
