The global anti-money laundering watchdog, the Financial Action Task Force (FATF), will maintain Iran's position on its blacklist until the country completes its full Action Plan.
"If Iran ratifies the Palermo and Terrorist Financing Conventions, in line with the FATF standards, the FATF will decide on next steps, including whether to suspend countermeasures.
Until Iran implements the measures required to address the deficiencies identified with respect to countering terrorism-financing in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system," the international body said in a press release published on its website Friday.
"Given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with FATF Standards, the FATF fully lifts the suspension of counter-measures and calls on its members and urges all jurisdictions to apply effective counter-measures, in line with Recommendation 19," the announcement said.
The FATF lifted the suspension of counter-measures on Iran and called on its members and all jurisdictions to apply effective counter-measures against Tehran since February 2020.
The FATF lifted the suspension of counter-measures on Iran and called on its members and all jurisdictions to apply effective counter-measures against Tehran since February 2020
In June 2016, it welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan.
Since 2016, Iran established a cash declaration regime, enacted amendments to its Counter-Terrorist Financing Act and its Anti-Money Laundering Act, and adopted an AML by-law.
In October 2019, the FATF called upon its members and urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran; introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions; and require increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in Iran.
In February 2020, the FATF noted that there are still items not completed and Iran should fully address, including “ratifying and implementing the Palermo and TF Conventions and clarifying the capability to provide mutual legal assistance”, “ensuring an adequate and enforceable customer due diligence regime”, ”demonstrating how authorities are identifying and sanctioning unlicensed money/value transfer service providers” and “ensuring that financial institutions verify that wire transfers contain complete originator and beneficiary information”.
According to Reuters, the group also added South Africa and Nigeria to its "grey list" of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing and took Morocco out of the grey list.
FATF members include 39 countries, including the United States, India, China and Saudi Arabia, as well as European countries such as Britain, Germany and France and the EU as such. Ukraine is not a member.
