Financial Action Task Force on Money Laundering Gives Iran Until October

The Financial Action Task Force (FATF) has given Iran until October to implement its plans to combat money laundering and terrorist financing or face being blacklisted. But Ali Khamenei opposes the plan.

The International Financial Action Task Force (FATF) expressed disappointment that the Islamic Republic government has not yet been able to implement the Financial Action Task Force's (FATF) Financial Action Task Force (FATF) criteria to combat money laundering and the financing of terrorism (CFT) and announced that the Iranian government has until October to implement the necessary measures.

In a statement issued in Paris on June 29, the Financial Action Task Force expressed hope that the Iranian government would pass the necessary laws in the coming months to remove it from the blacklist of countries deemed unsafe for investment.

Iran's accession to the Financial Action Task Force (FATF) is paving the way for international investments in Iran. In a speech about a week ago, Supreme Leader Ali Khamenei announced his opposition to joining the group and passing laws in line with its regulations.

The Financial Action Task Force statement, issued after a week of consultations on Iran, states: "The Financial Action Task Force (FATF) strongly expects Iran to take steps as quickly as possible on the path of reforms to ensure that it has addressed all remaining issues in its action plan by completing and implementing the required reforms, in particular in activating the necessary legislation."

The statement added: “The FATF expects Iran to immediately pursue the reform process expeditiously to ensure that all outstanding issues in this program are addressed… We expect Iran to adopt the relevant amendments to its laws to combat money laundering and terrorist financing by October 2018 in a manner that is fully consistent with FATF standards. Otherwise, the FATF will make appropriate decisions and take necessary actions.”

Opponents of the Islamic Republic joining this convention, as well as the Financial Action Task Force (FATF), worry that if laws are passed to combat money laundering and counter the financing of terrorism, the Islamic Republic's aid to groups like Hezbollah in Lebanon will be blocked. The United States and many countries consider Hezbollah in Lebanon and a number of other Islamic groups supported by Iran to be terrorist organizations.

Ali Khamenei's opposition to Iran's annexation

On Wednesday, June 20, in a meeting with the speaker of the parliament and a number of representatives, Ali Khamenei said that the parliament should independently pass laws in this regard and not follow international conventions designed by Western countries.

According to the ILNA news agency, Khamenei said: "As we said about some international conventions recently raised in the parliament, the Islamic Consultative Assembly, which is mature, mature, and wise, must independently legislate on issues such as combating terrorism or combating money laundering."

Last year, Hassan Rouhani's government submitted a bill to the Islamic Consultative Assembly to join Iran's Convention on the Suppression of the Financing of Terrorism and Money Laundering. Diplomats from the Islamic Republic's Ministry of Foreign Affairs had previously stressed the importance of joining the convention, as it would open up opportunities for foreign investment and global trade for Iran.

The Financial Action Task Force (FATF) was established in 1989 and sets international standards for combating money laundering and the financing of terrorism (CFT).

These anti-money laundering regulations include laws that require individuals and companies to explain to governments how they earn their income. This makes it more difficult for money obtained through illicit means, such as smuggling, bribery and financial crimes, to enter financial markets and helps to ensure the health of the financial and economic system.

Only in this way can international companies assess the risk of investing in "suspicious countries" and act more cautiously.

Source: DW