Iran and North Korea Remain on FATF Blacklist

  • Financial Action Task Force Leader called on all member states and allies to take effective measures against Iran and North Korea.
  • FATF said countries should be smarter in their banking and financial dealings with them.
  • Many experts believe that the huge corruption that some government officials admit has crept into the fabric of the Islamic Republic's system is due to these non-transparent actions.

The Tree Day Summit of the Financial Action Task Force ended yesterday. The Financial Action Task Force announced that the Islamic Republic and North Korea would remain on the institution’s blacklist. A member of the Expediency Council says the passage of the bill would make it difficult to circumvent the sanctions.

Financial Action Task Force

According to Reuters, Markus Player, head of the Financial Action Task Force, says that the situation in the two countries has not changed and therefore they will remain subject to reciprocal and restrictive measures.

He called on all member states and allies to take effective measures against Iran and North Korea. The player stressed that the two countries are more prudent in circumventing sanctions, and therefore other countries should be smarter in their banking and financial dealings with them.

Of the four bills related to the Financial Action Task Force, two have already been approved by the cabinet and parliament, and two are the Islamic Republic’s accession to the Palermo Convention on Transnational Organized Crime (CFT) and the Counter-Terrorism Financing (CFT) by the deadline. They remained undecided for approval by the Expediency Council.

Foreign Minister Mohammad Javad Zarif recently said that one of the reasons for the sharp rise in prices, especially the unprecedented rise in foreign exchange rates, the non-approval of the two bills and the Islamic Republic’s inclusion in the Financial Action Task Force’s “alert list”.

Admitting to Circumventing Sanctions with Cover Companies

Gholamreza Mesbahi-Moghaddam, a member of the Expediency Council, called such remarks a projection and said, on the contrary, the experience had shown that co-operation with the Financial Action Task Force on the two conventions would lead to “self-imposed sanctions”.

The former lawmaker says Iran is forced to use “cover-up” contracts and companies to circumvent US sanctions, and according to FATF criteria, this is considered money laundering and terrorist financing.

Mesbahi-Moghaddam told Tasnim News Agency on October 6, with US sanctions, Iran’s oil exports have been reduced to a minimum and the sale of “small amounts” of oil is done by circumventing sanctions and using cover companies.

A member of the Expediency Council recently told the same news agency in another interview: “Last year we had $43 billion in imports and over $41 billion in exports, all of which were covered by imports and exports and financial transfers.”

Lack of Transparency Breeds Widespread Corruption

Financial Action Task Force

In other words, all foreign affairs of the Islamic Republic are carried out through measures that can be considered as examples of money laundering and terrorist financing, and in any case, are non-transparent.

Many experts believe that the huge corruption that some government officials admit has crept into the fabric of the Islamic Republic’s system is due to these non-transparent actions and the use of illegal ways and illegal structures to circumvent sanctions.

Meanwhile, a member of the Recognition Council, while defending the non-approval of the two bills proposed by the Financial Action Task Force, considers this a necessity to continue circumventing the sanctions.

Meanwhile, some of the Islamic Republic’s main trade and political partners, such as China and Russia, have made joining the FATF a condition for expanding cooperation with Iran.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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