FATF Suspends Counter-Measures against Iran by June 2019

Last October, the global watchdog had given Iran until February to complete reforms or face consequences.

“The FATF decided at its meeting this week to continue the suspension of counter-measures,” The FATF said in a statement.

“While welcoming the passage of the Anti-Money Laundering Act, the FATF expresses its disappointment that the Action Plan remains outstanding and expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items by completing and implementing the necessary AML/CFT reforms,” it added. 

“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,” the international watchdog stated.

“The FATF also expects Iran to continue to progress with enabling regulations and other amendments,” the statement read.

Last month, Iran’s Guardian Council (GC) said despite a recent amendment to the parliamentary bill for the country’s accession to Combating the Financing of Terrorism (CFT) treaty - a series of standards set by the FATF - its problems are still in place.

To fulfill FATF requirements, President Hassan Rouhani’s administration has proposed four bills to the parliament for approval, two of which are still undecided, including the Palermo Convention.

In June 2018, the Iranian parliament passed a law allowing the country to join the United Nations Convention against Transnational Organized Crime (UNTOC).

Iran’s parliament had in May adopted new amendments proposed by the government to the country’s Anti-Money Laundering (AML) law as part of efforts to improve connections to the international banking and trade system.