FATF to Decide on Iran’s Delay in Approving Anti-Money Laundering Bill
The Financial Action Task Force plenary meeting has begun. Iran’s delay in approving the anti-money laundering and terrorist financing bills could have serious consequences for the country. The Guardian Council’s opposition and the Expediency Discernment Council’s hesitation have complicated matters.
The six-day Financial Action Task Force plenary meeting began on Sunday, February 16 in Paris. The holding of this plenary and its potential decisions could have serious consequences for the Islamic Republic of Iran.
The Islamic Republic is hoping that with the help of its lobbying efforts, and particularly given China’s presidency of this task force, the suspension of countermeasures against it will be extended once again.
In the six-day plenary of the Financial Action Task Force, which will be held until February 21 in Paris, 800 representatives from 205 countries worldwide are participating.
In addition, representatives from the International Monetary Fund, the United Nations, and the World Bank are also participating in this meeting. One of the main issues for negotiation and decision-making at the February plenary of this task force concerns two countries: Iran and Pakistan.
The purpose of establishing FATF is to combat money laundering and monitor funds stemming from criminal and terrorist activities.
Topics of the Six-Day Plenary
Multiple issues are on the agenda of the February plenary of the Financial Action Task Force. These include decision-making regarding digital currencies and their use for money laundering activities, as well as financial transfers in support of terrorist activities.
The Financial Action Task Force is also set to present the results of its investigations and negotiations to the plenary of member countries of the G20 group for their information and decision-making.
In addition, the issue of illegal wildlife trafficking, matters related to financing terrorist groups including the “Islamic State” (ISIS), al-Qaeda and other terrorist groups are also on the agenda of this plenary.
The main and central issues of this year’s plenary of the Financial Action Task Force are examining the progress of Pakistan and Iran regarding their measures in reducing declared financial risks and threats. The Iran issue is expected to be discussed in the coming days.
List of Countries Subject to Countermeasures
The Islamic Republic of Iran was removed from the list of countries subject to countermeasures in the June 2016 meeting. Iran and North Korea were on the list of countries subject to countermeasures.
The Financial Action Task Force had given the Islamic Republic of Iran 18 months to approve two bills related to money laundering and terrorist financing and implement the resulting obligations.
The government of the Islamic Republic failed to approve these two bills due to the Guardian Council’s opposition. The Expediency Discernment Council’s delay also prevented final decision-making on the matter.
From that time until February 2020, more than two years have passed. During this period, Iran’s suspension from countermeasures has been extended six times by the Financial Action Task Force. Now there is concern that participants in the Paris plenary may refuse to extend Iran’s suspension from countermeasures once again.
If Iran’s suspension from countermeasures is not extended, financial transfers and financial cooperation of this country with other countries in the world will become much more difficult. In such circumstances, the activities of financial institutions from other countries in Iran will be limited and subject to strict oversight. The Islamic Republic of Iran will also be prevented from establishing branches and economic representatives in other countries.
The rotating presidency of the Financial Action Task Force is currently held by China. Iran is hoping that with the help of China and its lobbying efforts, the suspension of countermeasures against this country will be extended once more.
Source: DW
