The Financial Action Task Force to combat the financing of terrorism and money laundering has just issued its latest statement on Iran. It welcomes “the commitment made by Iran to improve its AML/CFT regime” but still advises its members and their financial institutions to apply “enhanced due diligence” in dealing with Iran due to its “deficiencies.” According to media reports, one of these deficiencies is that Iran’s money-laundering legislation is still wanting. A second is Iran’s lack of legislation combating terror financing:
Iran has, to our knowledge, no law in place at the moment dealing with terrorist financing,” task force executive secretary Rick McDonell told The Associated Press. “It has one in relation to money laundering–very recently–but that’s deficient.”
But this is, with all due respect to FATF and its members, quite inaccurate. Iran does have a law dealing with terrorist financing: the annual state budget.