Global Financial Watchdog Updates Policies and Country Statuses
The Financial Action Task Force (FATF) concluded its three-day meeting in Singapore, with the Iranian regime remaining on the organization’s blacklist.
The meeting, attended by representatives from 200 jurisdictions and observers from international organizations, saw significant developments in the FATF’s approach to assessing and categorizing countries.
Revised Criteria and List Changes
The FATF revised its International Cooperation Review Group’s criteria for prioritizing and listing countries on the gray and black lists, which will be applied in future assessments.
Following local reviews, Turkey and Jamaica were removed from the gray list after successfully addressing strategic deficiencies identified in bilateral assessments. Conversely, Venezuela and Monaco were added to this list.
Currently, the gray list of countries under increased monitoring includes 21 nations, such as Syria and Yemen. The blacklist of “high-risk” countries calling for action comprises North Korea, Iran, and Myanmar.
Iran’s Continued Blacklist Status
Iran regime’s status on the blacklist remains unchanged. The FATF noted that the Iranian regime had committed to addressing its strategic deficiencies in June 2016, with the deadline expiring in 2018.
In 2020, FATF reminded the Iranian regime of its failure to take necessary measures. Given Iran regime’s non-implementation of the Palermo Conventions and the Terrorist Financing Convention, FATF has lifted the suspension on countermeasures and urges member states to implement all recommended actions.
FATF’s Ongoing Concerns
The FATF expressed ongoing concern about the terrorist financing threat from the Iranian regime and its impact on the international financial system. The organization stressed that if Iran’s regime ratifies the Palermo and Terrorist Financing Conventions, further steps, including potential suspension of preventive measures, will be considered.
About the FATF
The FATF, comprising 37 member countries along with the European Commission and the Gulf Cooperation Council, is the primary body addressing money laundering, terrorist financing, and the proliferation of weapons of mass destruction. Russia’s membership is currently suspended.
Iran’s Domestic Debate on FATF Membership
Iran’s potential membership in the Palermo and Terrorist Financing Conventions remains a contentious issue domestically. While the Iranian regime parliament approved membership within the framework of bills prepared by Hassan Rouhani’s government, the Guardian Council’s opposition led to the referral of these resolutions to the Expediency Discernment Council in November 2018. Despite the regime supreme leader’s approval for re-examination in December 2020, the issue remains unresolved.
Opposition and Historical Context
Opponents within this regime with Iran’s membership in the FATF argue that implementation could hinder support for Lebanon’s Hezbollah and proxy militias. The U.S. withdrawal from the JCPOA was previously cited as a reason for rejecting the parliament’s resolutions in the Guardian Council.
As the global financial landscape continues to evolve, Iran regime’s relationship with the FATF and its potential compliance with international financial standards remains a significant topic of discussion, both domestically and internationally.
