The Financial Action Task Force (FATF), the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT), indicated that the majority of Iran's action plan to address its significant AML/CFT deficiencies remains incomplete. In this context, it called on authorities to criminalize terrorist financing, identify and freeze terrorist assets, ensure an adequate and enforceable customer due diligence process, as well as guarantee the full independence of the Financial Intelligence Unit. It added that authorities should ensure that wired transfers contain complete information on the originator and beneficiary, and that banks are establishing a broader range of penalties for violations of money laundering offenses. Still, the FATF extended until February 2019 the suspension of the imposed counter measures used by international financial institutions against Iran. It called on Iran to bring into force the necessary legislation in line with FATF standards, or it will take further steps to protect against the risks that arise from the deficiencies in Iran's AML/CFT regime. The FATF said that Iran will remain on its list until the full action plan is completed. It considered that, until then, terrorism financing risks originating from Iran will continue to pose a threat to the international financial system. As such, the FATF reiterated its call on all jurisdictions to advise their financial institutions to apply enhanced due diligence to business relationships and transactions with natural and legal persons from Iran.
Source: Financial Action Task Force