Financial Action Task Force Extends Iran's Suspension from Blacklist for Another Four Months

The Financial Action Task Force (FATF) expressed regret on Friday, October 19, that most of Iran's commitments remain unresolved, while extending Iran's suspension from the blacklist for another four months. In a statement released at the end of its public meeting, the international body against money laundering and terrorist financing stated that Iran has until February to decide on fulfilling its commitments, 'either to align with global standards or face the consequences.' Until two years ago, Iran was on the FATF blacklist alongside North Korea, but after Iran and six world powers reached the JCPOA (nuclear deal) and Iran accepted certain commitments, the special measures against Iran were temporarily suspended. However, in its last report published in June 2018, the organization criticized Iran for the lack of progress in its political commitments and their failure to translate into practical actions. In its statement on Friday, the FATF also emphasized that it expects Iran to 'quickly take steps towards reform.' The expectations of the FATF from Iran include criminalizing terrorist financing without exempting those terrorist groups that 'strive against foreign occupation, colonialism, and racism.' [The Iranian parliament, however, in its October 7 resolution, still does not consider 'legitimate popular struggles against colonial domination and foreign occupation' as acts of terrorism.] Identifying and blocking the assets of terrorists in accordance with UN Security Council resolutions. Ensuring the implementation of a reliable regime for 'appropriate assessment.' Ensuring the complete independence of the financial intelligence unit and the necessity of reporting suspicious financial transactions if such transactions occur. Demonstrating how authorities identify and punish unlicensed financial service providers. Approving and implementing the Palermo Convention and the fight against terrorist financing and clarifying the ability to provide legal services. Ensuring that financial institutions register all financial transactions with complete information of the sender and receiver. Considering penalties for violators of laws related to money laundering. Ensuring the approval of necessary laws and procedures for the confiscation of assets as appropriate. The FATF is an intergovernmental organization that sets international standards for combating money laundering and terrorist financing (AML/CFT). Based in Paris, it provides recommendations to countries to improve their monetary and banking systems to protect the international financial system. The government of Hassan Rouhani sent four bills to the parliament to meet the FATF's demands, and although all four bills were approved by the parliament, only the 'Bill to Amend the Law on Combating Terrorist Financing' has received final approval from the Guardian Council. The 'Bill for Iran's Accession to the International Convention for the Suppression of the Financing of Terrorism' (CFT) was approved by the parliament about two weeks ago, but several members of the Guardian Council and the Expediency Discernment Council have stated they will not allow this resolution to receive final approval.