BAKU, Azerbaijan, March 26. Iran’s inclusion
in the Financial Action Task Force’s (FATF) blacklist is one of the
main reasons behind the lack of foreign investment interest in the
country, Hadi Khani, Secretary of Iran’s Prevention and Combating
of Money Laundering and Terrorism Supreme Council, told local
media, Trend
reports.
Khani pointed out that at the moment, foreign investors are
sitting on the fence when it comes to investing in Iran, owing to
the sanctions laid down by the United States and the red tape set
forth by FATF.
He emphasized that removing Iran from FATF’s “high-risk” list
would have a significant positive impact on the country’s economic
situation. The Basel (Basel III) index and FATF reports, which are
essential factors in calculating investment risks, are important in
managing these issues.
The official further pointed out that in the past Iranian year
(from March 20, 2024, through March 20, 2025), several special and
technical meetings were held with various sectors in Iran regarding
FATF conventions.
“Due to Iran being on the high-risk countries list, China’s
Sinosure export insurance company is paying more attention to the
risk calculations of investing in Iran. If this situation persists,
the country’s investment plans will face serious obstacles,” Khani
added.
Khani also noted that two remaining FATF conventions (CFT and
Palermo) are expected to be reviewed and approved soon, as Iran’s
removal from the blacklist could take a long time.
To note, Iran’s Expediency Discernment Council is currently
re-examining the two conventions (CFT and Palermo) that have not
been ratified in Iran. He explained that there are differing
opinions within the country about the approval of these
conventions, with some seeing them as detrimental, while others
believe they align with the country’s interests.
The Financial Action Task Force (FATF) of the Organization for
Economic Cooperation and Development is an intergovernmental body
that regulates the rules for combating money laundering and
terrorist financing. At the last meeting of this organization, Iran
was warned that if the country’s program of steps is not improved,
Iran may be added to the list of non-cooperative countries. Iran
has complied with 37 out of 41 FATF steps.
The remaining four steps or conventions fall under the scope of
the legislation. “Amendments to the Law on Combating Money
Laundering,” “Amendments to the Law on Combating the Financing of
Terrorism,” “Accession to the International Convention on Combating
Transnational Organized Crime (Palermo),” and Accession to the
International Convention on Combating the Financing of Terrorism
(CFT) have been drafted by the Iranian government and sent to the
parliament. Although the four conventions were approved by the
parliament and sent to the Advisory Council, the CFT conventions
and the Palermo Convention have not yet been approved by the
mentioned council.
The G7 group founded the FATF in 1989 to address money
laundering. The entity is constituted of 37 stakeholders, with its
governance framework centralized in the Parisian locale.
The Financial Action Task Force classified Iran as a high-risk
jurisdiction in 2007 and implemented formal sanctions against
Tehran in 2009. As a result, sovereign entities were compelled to
implement due diligence in their fiscal and banking operations
involving Iran. Since 2016, strategic diplomatic maneuvers have
effectively deferred the execution of countermeasures against
Iran.
The Financial Action Task Force (FATF) classified Iran as a
non-compliant jurisdiction (blacklist) on February 21, 2020.
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