The Financial Intelligence Unit (FIU) of the Ministry of Economy has called on banks and credit institutions to redefine infrastructure for effectively implement restrictions on individuals suspected of money laundering.
Financial and credit institutions have been given a four-month deadline to fall in line and update software systems to comply with the restrictions imposed by the Financial Intelligence Unit.
Constraints are in line with Anti-Money Laundering (AML) Law and compensate delays in implementing rules tied to strengthening the fight against dirty money and corruption, ISNA reported.
FIU head Hadi Khani reemphasized the need and significance of curbing money laundering and corruption. "Failure to take appropriate action by financial and credit institutions will result in legal action as enshrined in the Anti-Money Laundering Law.
Established in 2008, the FIU is affiliated to the Iran High Council on Anti-Money Laundering and headed by the economy minister. It has a mandate to look into potentially suspicious money transactions. IFU has signed documents with 15 countries.
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 forex.
Following concerns over money laundering, the regulator last year barred banks from processing payments related to 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 as time passed it became obvious 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.
In 2019, the CBI in an executive bylaw made it mandatory for banks to create special units to monitor potential money laundering.
To manage risks emanating from suspected money laundering and terrorism funding, lenders are obliged to critically review and identify risks before offering financial services.
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.
Earlier the central bank announced a daily cap for banking transactions by clients. Per the rule, which came into effect early this year, transactions via all inter-bank systems was limited to one billion rials per person per day.
The regulator had earlier compartmentalized individual and business accounts. In February, it required individual customers to present documents showing the reason for transactions above two billion rials at one bank per day.
The Paris-based Financial Action Task Force, the global money-laundering watchdog, has long urged Iran to strengthen its legal framework to guard against money laundering.
The watchdog has put Iran on its blacklist after Tehran failed to fully comply with its anti-money laundering norms. During its plenary meeting in October, the FATF announced that Iran would stay on its blacklist.
