FATF issues new terrorist financing warning on Iran

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WASHINGTON - In a recent statement, the Financial Action Task Force (FATF), the inter-governmental body whose purpose is the development and promotion of policies to combat money laundering and terrorist financing, has reiterated its warning to world governments on the need to enhance their due diligence requirements for anti-money laundering (AML) and counter-terrorist financing (CTF) regime when dealing with Iran.

The statement reads: “Consistent with its Statement on Iran, dated 11 October 2007, the FATF confirms its call to its members and urges all jurisdictions to advise their financial institutions to take the risk arising from the deficiencies in Iran’s AML/CFT regime into account for enhanced due diligence. Iran is encouraged to continue its engagement with the FATF and the international community to address, on an urgent basis, its AML/CFT deficiencies.”

The US Treasury Department issued the following statement in response to FATF’s announcement: “The Financial Action Task Force's statement on Iran today sends a clear message to governments and financial institutions worldwide that the threat Iran poses to the international financial system continues unabated. Not only has FATF reiterated its October statement expressing concern about Iran's anti-money laundering and counter-terrorist financing deficiencies, the FATF has called upon its members to advise their financial institutions of this risk and urged all other countries to do the same.”

FATF also identified others areas of concern, specifically Uzbekistan, where a series of presidential decrees has effectively repealed the AML/CFT regime and generates a money laundering/financing of terrorism vulnerability in the international financial system. Pakistan and Turkmenistan were also singled out as areas of concern.