FATF expresses disappointment over Iran, urges it to swiftly implement anti-money laundering reforms

The Financial Action Task Force (FATF) on Friday expressed disappointment over Iran, saying that Tehran's action plan regarding anti-money laundering and countering the financing of terrorism (AML/CFT) remains "outstanding."

Recalling that in 2016 FATF had welcomed Iran's high-level political commitment to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan, the global watchdog in a statement said, "While acknowledging that Iran has recently adopted the AML-CFT bylaw, which the FATF has not yet reviewed, the FATF expresses its disappointment that the Action Plan remains outstanding."

"The FATF expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items by completing and implementing the necessary AML/CFT reforms."

"If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, then the FATF will fully lift the suspension of counter-measures and call on its members and urge all jurisdictions to apply effective counter-measures," it added.

Iran's action plan expired in January 2018. FATF said it has been noted that in October 2019, there are still items not completed.

"Iran will remain on the FATF Public Statement until the full Action Plan has been completed. 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," said the FATF in its statement.

It also congratulated Ethiopia, Sri Lanka and Tunisia for the "significant progress made in addressing the strategic AML/CFT deficiencies identified earlier by the FATF and included in their respective action plans."

"These jurisdictions will no longer be subject to the FATF's monitoring under its on-going global AML/CFT compliance process, and will work with the FATF-Style Regional Body of which they are a member to continue to strengthen their AML/CFT regimes," added the FATF.

FATF president Xiangmin Liu chaired the first meeting under the Chinese Presidency of the FATF from October 16-18.

During this three-day meeting, over 800 delegates representing 205 jurisdictions and international organisations discussed several issues.