Iran Likely to Remain on the Money Laundering Blacklist

Several Western officials close to the international body overseeing the fight against money laundering said on Wednesday that despite recent efforts and lobbying by Iran, Tehran is expected to remain on the blacklist of high-risk countries. According to Reuters, the Financial Action Task Force (FATF), established in 1989, monitors international standards against money laundering, terrorist financing, and weapons of mass destruction. Currently, a meeting of the 37 members of this group is taking place in South Korea, and the organization will announce its decision later this week. A Western official familiar with the FATF negotiations told Reuters that there seems to be no immediate change in Iran's status on the blacklist, but I think Iran's recent actions and progress may be acknowledged. In this context, two other Western officials also told Reuters that Iran is unlikely to be removed from the blacklist. Following Iran's nuclear agreement with six world powers, the JCPOA, Iranian officials have stated that despite this agreement, Tehran has not been able to benefit sufficiently from its advantages. Although nuclear sanctions against Iran were lifted after the JCPOA, other sanctions still exist that prevent Iran from accessing the dollar exchange system or U.S. financial markets. Meanwhile, Alexandra Wijmang Daniel, spokesperson for the FATF, stated that the updated list of this international body overseeing money laundering regarding high-risk countries will be published later this week. According to Reuters, Iran's removal from the money laundering blacklist could significantly help the country cooperate with foreign banks. The FATF expressed particular concern in February regarding Iran and North Korea's inability to address concerns about the financing of terrorist groups and other threats that jeopardize the integrity of the international financial system. Meanwhile, Valiollah Seif, the head of Iran's Central Bank, stated in an interview with CNBC on May 1 that FATF officials were unaware of the changes made in Iran's banking system. Valiollah Seif expressed hope that Iran would be removed from the 'blacklist.' The head of the Central Bank made these remarks after a meeting between Iranian government representatives and FATF officials in Paris. In this context, Seif's hope for the removal of Iranian banks from the 'blacklist' was noted. The head of the Central Bank stated that only large banks fear relations with Iran, while the Deputy Governor noted that Iranophobia in the banking sector continues.