Global watchdog FATF places Iran on terrorism financing blacklist

An Iranian flag flutters in front of the head office of the Export Development Bank of Iran (EDBI) in Tehran November 9, 2008. (Reuters)

The global dirty money watchdog placed Iran on its blacklist on Friday after it failed to comply with international anti-terrorism financing norms, a move that will deepen the country’s isolation from financial markets.

The decision came after more than three years of warnings from the Paris-based Financial Action Taskforce (FATF) urging the Islamic Republic to either enact terrorist financing conventions or see its reprieve from the blacklist lifted and some counter-measures imposed.

“Given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, the FATF fully lifts the suspension of counter-measures and calls on its members and urges all jurisdictions to apply effective counter-measures,” the group’s 39 members said in a statement after a week-long plenary session.

These would entail more scrutiny of transactions with Iran, tougher external auditing of financing firms operating in the country and extra pressure on the few foreign banks and businesses still dealing with Iran.

READ MORE: Iran will continue to fund terror abroad despite laundering regulations: Experts

“The consequence of (Iran’s) inaction is higher costs of borrowing and isolation from the financial system,” a Western diplomat told Reuters.

The United States commended the task force’s action after what it said was Tehran’s failure to adhere to FATF’s standards.

Iran “must face consequences for its continued failure to abide by international norms,” US Secretary of State Mike Pompeo said in a statement.

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Last Update: 18:29 KSA 21:29 - GMT 18:29
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