An international task force to combat money laundering has given Iran four months to pass anti-money-laundering and terrorism-financing rules or face increased international scrutiny of its banks.
The Financial Action Task Force (FATF), an intergovernmental organization that underpins the fight against money laundering and terrorist financing, announced the deadline at its February 22 meeting in Paris.
“If by June 2019, Iran does not enact the remaining legislation in line with FATF standards, then the FATF will require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran,” it said.
FATF acknowledged that Iran had passed a series of legislative measures since 2017, but said more steps were needed.
It also called on Iran to change domestic rules that offer exemptions to UN-designated terrorist organizations if those groups are “attempting to end foreign occupation, colonialism, or racism.”
Tehran also needed to fully identify and freeze “terrorist assets” in line with UN Security Council resolutions, the task force said.
Foreign businesses say compliance and Iran’s removal from the FATF’s blacklist are key issues to be resolved before they invest in the country.
Hard-liners in Iran have opposed the measures, claiming it threatens national security.