• Business And Markets

    AML Authority Warns Acquirers to Play by the Rules

    The Supreme Council for Anti Money Laundering and Counter Financing Terrorism has announced new measures to control and curb suspicious transactions.

    According to IRNA, retailers who reject card payment and oblige buyers to pay cash, gold or foreign currency will now be subject to investigation as suspects in money laundering activities, and their names will be sent to the judicial authorities.

    Hadi Khani, the secretary of the council, stated that once the Iran National Tax Administration notifies the Financial Intelligence Unit, anyone who intentionally does accept payments via POS terminals and compels customers to use alternative methods will be scrutinized as a money laundering suspect.

    “These individuals will face legal consequences in addition to the submission of complete financial reports to the authorities,” Khani said.

    “Those involved in tax evasion and money laundering, would be classified as suspicious individuals engaging in dubious transactions. They would be closely monitored in accordance with the law, with their financial activities thoroughly analyzed and reported to the judicial authorities plus restrictions would be imposed on them.”

    Khani emphasized that economic crime, including tax evasion and money laundering, are intertwined. “Proceeds from and all economic offenses, such as tax evasion, inevitably go through the money laundering cycle to reenter economic activities.”

    The official noted that all relevant entities, including INTA, have responsibility to report any suspicious transactions to the FIU, in accordance with the prescribed indicators. He emphasized the need for effective collaboration with the tax authority to address such issues.

    Khani highlighted that laws and regulations over money laundering and financing terrorism are capable of confronting economic offenders, identify proceeds from crime and ensure justice. “ The Anti-Money Laundering Law empowers authorities to seize and confiscate assets if required.” 

    He emphasized that there is a need for new regulations in the fight against dirty money. As per law, tax on enterprises is to be calculated based on sales registered in their point-of-sale systems

    Profits made by businesses are taxed by INTA; the higher the taxpayers’ profit, the higher the tax. According to Article 101 of the Law on Direct Taxes for Business Owners, up to 360 million rials [$1,124] in [annual] profit was exempt from tax in fiscal 2021-22 and 360 million rials will be deducted from the profit made in the year and the rest will be taxed.

    Up to 500 million rials ($1,561) of profit is subject to 15% tax;  profit between 500 million rials and 1,000 million rials ($3,123) is subject to a 20% tax and 25% tax for profit exceeding 1,000 million rials.

    As is the norm, POS devices topped the list of instruments with the biggest market share at 91.17% followed by online payment gateways 7.71% and mobile instruments 1.13%.

    Processing more than 3.4 billion transactions worth 7,984 trillion rials ($16.63 billion), POS devices accounted for 92.36% of the total transactions.

    Based on the report, there were 1,754 instruments per 10,000 adults (above 18 years old) and POS terminals topped the list with 1,599.74 per 10,000 adults. Mobile instruments had the lowest penetration rate with 19.76 instruments for every 10,000 adults. 

    Tehran topped the list of provinces with the highest number of POS terminals with 1.703 million devices in the sprawling metropolis – 0.65% higher on the earlier month.