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22 February 2020
REGULATION

FATF places Iran on terrorism financing blacklist

The Governor of the Central Bank of Iran (CBI) dismissed the global watchdog’s decision, calling it politically motivated and not a technical decision

Iran will remain on the FATF statement on High Risk Jurisdictions Subject to a Call for Action until the full Action Plan has been completed

by Kudakwashe Muzoriwa

Paris-based Financial Action Task Force (FATF) has placed Iran on its blacklist on after the Islamic Republic failed to comply with international anti-terrorism financing norms, a move that will deepen the country’s isolation from financial markets.

FATF stated that in June 2016, Iran committed to address its strategic deficiencies, the action plan expired in January 2018 and in February 2020, the anti-money laundering watchdog noted that Iran had not completed the action plan.

“Given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with the 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,” said FATF.

The global money laundering watchdog called upon its members and urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran in October 2019.

Additionally, FAFT also called upon members to introduce enhanced relevant reporting mechanisms and require increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in Iran.

The Islamic Republic will remain on the FATF statement on High Risk Jurisdictions Subject to a Call for Action until the full Action Plan has been completed.

According to local newswire, IRNA, the Governor of the Central Bank of Iran (CBI) dismissed FATF’s decision, calling it politically motivated and not a technical decision.

 Abdolnasser Hemmati, the Governor of CBI, said, as saying. “I can assure our nation that the FATF act to blacklist Iran will bring no problem for foreign trade and stability of the currency.”


RELATED STORIES: Central Bank of Iran FAFT Iran

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