Financial Action Task Force: Iran Remains on the 'Black List' While UAE Exits the 'Grey List'

The Financial Action Task Force (FATF) announced on Friday, February 23, that it has removed the United Arab Emirates from its 'grey list'. Meanwhile, according to the latest classification, the Islamic Republic of Iran remains on the FATF's 'black list'. The Governor of the Central Bank of the Islamic Republic stated on February 19: 'Due to sanctions, we are now using other tools instead of SWIFT, and we have our own financial instruments; what is wrong with having our own FATF?' The UAE, considered a popular destination for many millionaires, bankers, and hedge funds, was added to the FATF's grey list in 2022 due to the risk of money laundering and terrorist financing through banks, precious metals, and stones, as well as assets. Nevertheless, even after being placed on the FATF's grey list, the UAE continued to attract many wealthy individuals from around the world. This Gulf Arab country is also a popular destination for cryptocurrency companies and has attracted many Russians following the Ukraine war. The fifth public meeting of the FATF, as the global standard-setting body for combating money laundering and terrorist financing, concluded on Friday under the presidency of Singapore, with the Islamic Republic of Iran still remaining on the organization's black list. The FATF also reiterated its condemnation of Russia's illegal, unjustified, and unwarranted invasion of Ukraine and expressed concern over the increasing financial cooperation between Russia, Iran, and North Korea. The FATF called for vigilance against the negative impacts of cybercriminal activities and ransomware on the global financial system. In this context, Janet Yellen, the U.S. Treasury Secretary, praised the FATF's vital actions to strengthen global standards against illegal financing while referencing the historic initiatives by the United States to protect its financial system. Mohammad Javad Shaleh-Saadi stated that Iran's presence on the FATF's black list does not allow for economic development. Michael Sexton, a cryptocurrency expert, noted that the Iranian government wants to benefit from cryptocurrencies, but the cost is high. The U.S. has sanctioned several individuals and entities linked to Hamas and several members of the Islamic Revolutionary Guard Corps. Iran's continued presence on the FATF's black list has led Wahidi to accuse the West of 'money laundering' drug-related activities.