The latest annual report of the Eurasian Group on Combating Money Laundering and Terrorist Financing (EAG) for 2024–2025 indicates a notable shift in the organization’s engagement with Iran, moving from broad political consultations to structured, operational collaboration. For Tehran—still subject to FATF’s highest category of counter-measures since early 2020—the development marks its most consequential multilateral effort in recent years to address deficiencies in anti–money laundering and counter-terrorist financing (AML/CFT) regulations.
The Financial Action Task Force (FATF), created in 1989 to coordinate global standards against money laundering and terrorism financing, began publicly listing “non-cooperative jurisdictions” in 2000. Iran first entered the list in 2008, when the task force warned that although Tehran had expressed commitments to reform, major strategic gaps remained. By 2012, Iran and North Korea were the only countries facing full counter-measures—the strictest form of FATF pressure, which urges member states to impose enhanced due diligence and severe restrictions on financial interactions.
A brief thaw occurred between 2016 and 2019, when FATF temporarily suspended counter-measures following Iran’s approval of an action plan. However, delays in completing commitments led FATF to reinstate the highest-level warnings in 2020. The renewed restrictions deepened banking isolation and increased the relevance of regional technical partnerships, particularly with EAG, where Iran holds observer status.
Structured Assistance Framework
Central to the new phase of cooperation is the “Comprehensive Technical Assistance Program for Iran,” which EAG has designated as one of its top priorities. The program aims to strengthen Iran’s national AML/CFT system, align domestic practices with FATF standards, and support Tehran in preparing an updated progress report for the task force’s International Cooperation Review Group. Successful delivery of this report is widely seen as a prerequisite for Iran’s eventual removal from FATF’s high-risk jurisdiction list.
The foundation for the assistance package was laid during EAG’s 41st plenary session in Indore, India, in October 2024. Iran’s delegation, led by Hadi Khani—secretary of Iran’s High Council for Combating Money Laundering and Terrorist Financing—outlined the country’s needs and emphasized institutional reforms undertaken since 2020. The presentation received unanimous support from all member states, which agreed in principle to mobilize technical assistance.
Operational details were finalized at the 42nd EAG plenary in Moscow in May 2025, where the timeline, scope, and division of responsibilities among member countries were formally approved. The EAG secretariat was tasked with drafting a detailed implementation roadmap, while member states committed to provide specialized expertise. The annual report characterizes this step as a transition from political dialogue to concrete operational planning—an evolution that strengthens EAG’s regional role and signals growing trust in its mechanisms.
At the domestic level, significant challenges continue to hinder Iran’s AML/CFT performance. Khani recently acknowledged persistent problems such as shell companies and “rent-a-account” schemes, which remain active despite repeated warnings. He argued that the Financial Intelligence Unit has expanded preventive tools, upgraded data-monitoring systems, and improved supervisory analytics, placing many of Iran’s recent measures in line with FATF recommendations. These include enhanced transaction transparency, smarter risk-based oversight, and wider adoption of compliance protocols designed to curb corruption and financial crime.
EAG’s deeper engagement may represent a turning point in Iran’s long struggle to address financial-system vulnerabilities. If effectively implemented, the assistance program could accelerate alignment with global standards, strengthen supervisory institutions, and improve the integrity of Iran’s banking and data-monitoring systems. Over the long term, these steps could help reduce the burden of FATF counter-measures and pave the way for more stable integration into the international financial environment.
