Mexico City, Mexico – The Financial Action Task Force (FATF), in its concluding statement following its plenary meeting held in Mexico City from February 11-13, announced that it would keep Iran on its “blacklist” of high-risk countries. This decision stems from Tehran’s failure to complete the majority of the action plan required of it internationally.
Key points of the final statement
The organization confirmed that Iran remains on its list of “countries requiring action,” the most stringent category under its standards.
The statement noted that Iran’s obligations under the Palermo Convention (Combating Transnational Organized Crime) and the Convention on Combating the Financing of Terrorism remain inconsistent with international standards. Furthermore, the group criticized Iran’s “extensive reservations,” specifically its policy of implementing provisions only in accordance with domestic law. These reservations, the group stated, are “excessively broad” and effectively render the treaties meaningless.
Repercussions of the decision and international measures
Based on this classification, the Financial Action Task Force (FATF) called on member states and the international community to continue to tighten controls on financial transactions related to Iran.
It also called for imposing additional restrictions on financial institutions dealing with the Iranian banking system.
The statement emphasized the need to manage financial flows related to food, medicine, and humanitarian aid with caution. The level of risk must be considered to ensure that these funds reach their intended recipients and are not misused.
What is the FATF group?
It is an international organization based in Paris that sets global standards for combating money laundering and terrorist financing. Its policies aim to enhance the transparency of the global financial system and prevent the flow of illicit funds.
Iran will remain under this stringent designation until it fully implements the action plan agreed upon with the international organization.
