Iran enters FATF blacklist

TEHRAN: Financial Action Task Force (FATF), the global anti-money laundering watchdog, on Friday put Iran on its blacklist after Tehran failed to comply with international anti-terrorism funding norms.

This came after Iran failed to meet the deadline set the by the watchdog at FATF’s last meeting in October to fully comply with FATF standards. The FATF had then given Iran a final deadline to comply with international norms after which “it would urge all its members to apply countermeasures”.

“The FATF fully lifts the suspension of counter-measures and calls on its members and urges all jurisdictions to apply effective counter-measures,” the watchdog said in a statement published on its website Friday, international media reported.

Reacting to the global watchdog decision, Abdolnasser Hemmati, the Central Bank of Iran’s Governor, discounted the FATF move, saying “it won’t pose any obstacle to Iran’s foreign trade and stability in currency rates”.

According to FATF, 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. If Iran ratifies the Palermo and Terrorist Financing Conventions, in line with the FATF standards, the FATF will decide on the next steps, including whether to suspend countermeasures.

“Until Iran implements the measures required to address the deficiencies identified with respect to countering terrorism-financing in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system.”

The FATF said in the statement that it has recognised the progress of Iran’s legislative efforts to implement anti-money laundering and countering financing terrorism polices.