BAKU, Azerbaijan, January 7. Iran's adherence to the working group on the Financial Action Task Force (FATF) may simplify the investment process in the country, spokesperson for the Iranian government, Fatemeh Mohajerani, said in a press briefing in Tehran on January 7, TurkicWorld reports.
According to her, the FATF comprises 42 treaties, of which Iran has executed 40 over the years. The CFT (combating the financing of terrorism) and Palermo agreements have not been ratified in the country. The two accords are presently being evaluated by the Advisory Council at the request of Iran's Supreme Leader Ayatollah Seyyed Ali Khamenei.
Mohajerani elucidated that the aforementioned accords pertain to the counteraction of terrorism facilitation and the mitigation of financial malfeasance associated with money laundering. Undoubtedly, the execution of these two accords is presently underway within the national framework. The financial institutions in Iran are not engaged in illicit money transfer activities.
The official pointed out that even its dealings with friendly nations will hit a snag if Iran doesn't get its act together and comply with the FATF guidelines.
The Financial Action Task Force (FATF) of the Organization for Economic Cooperation and Development is an intergovernmental body that regulates the rules for combating money laundering and terrorist financing. At the last meeting of this organization, Iran was warned that if the country's program of steps is not improved, Iran may be added to the list of non-cooperative countries. Iran has complied with 37 out of 41 FATF steps.
The remaining four steps or conventions fall under the scope of the legislation. "Amendments to the Law on Combating Money Laundering," "Amendments to the Law on Combating the Financing of Terrorism," "Accession to the International Convention on Combating Transnational Organized Crime (Palermo)," and Accession to the International Convention on Combating the Financing of Terrorism (CFT) have been drafted by the Iranian government and sent to the parliament. Although the four conventions were approved by the parliament and sent to the Advisory Council, the CFT conventions and the Palermo Convention have not yet been approved by the mentioned council.
The G7 group founded the FATF in 1989 to address money laundering. The organization comprises 37 members, with its administration situated in Paris.
The FATF designated Iran as a high-risk jurisdiction in 2007 and enacted formal sanctions on Tehran in 2009. Consequently, nations needed to exercise prudence in financial and banking transactions with Iran. Since 2016, diplomatic initiatives have postponed the implementation of retaliatory actions on Iran.
The Financial Action Task Force (FATF) designated Iran as a non-cooperative country (blacklist) on February 21, 2020.
