Iran Remains on Money Laundering Blacklist; Suspension of Some Restrictions for One Year

An international group monitoring money laundering worldwide decided on Friday to keep Iran on the blacklist of high-risk countries. Despite this decision, the organization announced that it welcomes Iran's promises for improvement and will suspend some restrictions for a year. According to Reuters, following a meeting of the 37 members of this organization in South Korea, the Financial Action Task Force (FATF) stated in a statement that it welcomes Iran's agreement and acceptance of high-level political commitments regarding financial actions and addressing its strategic issues. The statement mentioned that they have decided to suspend the restrictions imposed on Iran for 12 months to monitor Iran's progress in implementing the financial action plan. They stated that if Iran fails to improve its record on money laundering and financing terrorism as promised, severe measures will be taken. However, if Iran succeeds, more positive steps will be taken in the future. Earlier in the week, Reuters reported that Iran was negotiating and lobbying with FATF members to be removed from the organization's blacklist. It was noted that removing Iran from this list could significantly aid trade with global banks. Previously, in Ordibehesht, Valiollah Seif, the head of the Central Bank of Iran, expressed hope that Iran would be removed from the special list. Despite the temporary suspension of some restrictions by this organization, a banking expert told Reuters that this decision does not change much for Iran, as international institutions independently have their own restrictions on transactions and trade with Iran. The FATF expressed particular concern in February regarding Iran's and North Korea's inability to address concerns about the risks of financing terrorist groups and other threats that jeopardize the integrity of the international financial system. Members of this organization also decided to keep North Korea on their blacklist and warned other countries to be cautious of Pyongyang's actions to evade sanctions. The FATF has been established since 1989 and monitors international standards against money laundering and the financing of terrorism and weapons of mass destruction.