The Financial Action Task Force (FATF) has given Iran until June to comply with its anti-money laundering (AML) and counter financing of terrorism (CFT) standards.
If the Islamic Republic fails to meet FATF standards by then, it will face tougher oversight from the global AML/CFT watchdog.
Until at least June 2019, FATF says it will “continue the suspension of counter-measures”.
Iran said in June 2016 that it was committed at the highest political level and decided to seek technical assistance to implement an action plan it had agreed with FATF.
Because Iran provided that political commitment and has taken relevant steps to improve its AML/CFT regime, FATF decided in October 2018 to continue the suspension of counter-measures.
Iran has made substantial improvements to its AML/CFT framework. In November 2017, Iran established a cash declaration regime. In August 2018, it enacted amendments to its Counter-Terrorist Financing Act and in January 2019, Iran enacted amendments to its Anti-Money Laundering Act.
The FATF recognises the progress of these legislative efforts but is still awaiting two AML/CFT bills that have been passed by parliament but have not been ratified.
Once the remaining legislation comes fully into force, the FATF will review this alongside the enacted legislation to determine whether the measures contained therein address Iran’s action plan, in line with the FATF standards.
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