Financial Action Task Force: Iran’s Measures Are Not Enough
In its closing statement at the Paris seminar, Financial Action Task Force (FATF) extended the suspension of Iran from their blacklist.
According to the statement, FATF will continue to suspend actions against the Islamic Republic, however, they have announced their dissatisfaction with Iran’s measures in implementing the task force’s standards for combating money laundering.
FATF expressed its disappointment with the insufficient implementation of anti-terrorism and money laundering legislation in Iran, and stated that if Iran will not address their shortcomings, the possibility of financial support of terrorism by Iran will always remain a concern.
The FATF report published on Friday, October 19, fully reviews the Islamic Republic’s actions and mentions that the following items are still not completed and Iran should fully address its remaining items, including:
(1) adequately criminalizing terrorist financing, including by removing the exemption for designated groups “attempting to end foreign occupation, colonialism, and racism”.
(2) identifying and freezing terrorist assets in line with the relevant United Nations Security Council resolutions.
(3) ensuring an adequate and enforceable customer due diligence regime.
(4) ensuring the full independence of the Financial Intelligence Unit and requiring the submission of STRs for attempted transactions.
(5) demonstrating how authorities are identifying and sanctioning unlicensed money/value transfer service providers.
(6) ratifying and implementing the Palermo and TF Conventions and clarifying the capability to provide mutual legal assistance.
(7) ensuring that financial institutions verify that wire transfers contain complete originator and beneficiary information.
(8) establishing a broader range of penalties for violations of the ML offense.
(9) ensuring adequate legislation and procedures to provide for confiscation of property of corresponding value.
The earlier part of the report is focused on ISIS and its financial empire. The report also makes suggestions for 11 other countries including Yemen, Syria, Serbia, and Pakistan.