The FATF says that given Iran’s non-compliance with the Palermo Convention and the Counter-Terrorism Financing Convention, it recommends that all countries return to full implementation of precautionary measures in relation to Iran.
Iran returned to FATF Blacklist
The head of Iran’s central bank says the decision has little effect.
A list published by a special group of high-risk countries for money laundering and cautionary advice about them has become known as a “black list”.
The Iranian government has been able to persuade the international organization to suspend its presence on its black list by promising reforms, but after long struggles between the government, parliament, the Guardian Council and ultimately uncertainty in the Expediency Council, Iran has joined two conventions. The target group was not finalized.
The Financial Action Task Force, which has repeatedly extended Iran’s deadline to accede to these conventions, said in a statement that if Iran joins the two conventions in question, it would decide on next steps, including a blacklisting.
The statement came at the end of a meeting of the Financial Action Task Force in the French capital, Paris.
Opponents of joining FATF conventions in Iran say the measures could limit the Revolutionary Guards’ overseas activities as well as Iran’s efforts to circumvent US sanctions.
The Iranian government, seeking approval of these conventions, was concerned that efforts to establish a special financial channel with Europe would fail if it returned to the blacklist.
It has been more than a year since the US withdrawal from the nuclear deal that Donald Trump has lifted unilateral sanctions against Iran. Many non-US corporations, fearing US sanctions, refuse to deal with Iran, and Iran’s foreign trade, including oil exports, has been hit hard.
Iran’s return to the Blacklist for Financial Action means that companies and banks that still have financial and business ties with Iran will face more restrictions.
However, Iran’s central bank chief, Abdul Nasser Hemmati, said the decision “will not pose a problem for Iran’s foreign trade and exchange rate stability.”
Behrang Tajdin says the relationship between Iran and the organization, while legal and technical in appearance, is “highly political” on both sides.