FATF extends suspension of its measures against Tehran
Staff Host Account
/ Categories: Islam Times-English

FATF extends suspension of its measures against Tehran

Iran has to implement those reforms in order to join the body for increased financial transactions with the rest of the world in the face of unilateral US sanctions.  "While welcoming the passage [by Iran] 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,” the Paris-based body said in a statement Friday. It warned that if Iran fails to enact the remaining legislation based on FATF’s standards by June 2019, the FATF will “require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran.” Last October, Iran's parliament approved four bills put forward by the government to meet standards set by the FATF but the oversight Guardian Council dismissed one of the bills. The council said it had found "flaws and ambiguities" in the draft legislation which is purported to fight terror financing, but in fact targets Iran for supporting resistance movements such as Hezbollah.  "Until Iran implements the measures required to address the deficiencies identified with respect to countering terrorism-financing in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system," the Friday statement said. European signatories of the 2015 nuclear deal between Tehran and world powers have asked Iran to join the FATF before a new payment mechanism, officially called the Instrument in Support of Trade Exchanges (INSTEX), takes force. Iranian critics of INSTEX say the Europeans have conditioned its implementation to Iran joining the FATF. FATF's proponents have said the measure would smooth the path for Iran’s increased financial transactions with the rest of the world and help remove the country from investment blacklists. Opponents, however, say membership in the FATF will only make the country vulnerable to outside meddling.  They say Iran's implementation of FATF standards so far has not only failed to attract investment, but it has also exposed various institutions to extraterritorial regulations and penalties. The FATF cannot impose sanctions, but individual states that are its members have used the group's reports to take punitive measures against their adversaries. As a result, Iran has been targeted by US and European sanctions. Iran has already been implementing a domestic anti-money laundering law as part of its efforts toward financial transparency. Additionally, it has long been combating terror financing.

Link to original article

Previous Article India to cut flow of river water to Pakistan as tensions rise over Kashmir attack
Next Article Iran living up to nuclear deal terms despite US sanctions: IAEA
Print
111 Rate this article:
No rating

Leave a comment

Add comment

x
«September 2019»
MonTueWedThuFriSatSun
26
27
28
29
30
31
1
2
3
4
5
6
7
8
9
1011
12
13
14
15
16
17
18
19
2021
22
23242526272829
30123456