FATF maintains Iran, North Korea, and Myanmar on black list

The Financial Action Task Force (FATF) has decided to keep Iran, North Korea, and Myanmar on its high-risk black list. In a statement released on Friday, the Paris-based international body noted that these three nations continue to face fundamental deficiencies in their systems to combat money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.

Regarding Iran, the FATF reported that despite the resumption of engagement and the submission of a new progress report, improvements remain limited. The organization stated that Iran has failed to implement the majority of its commitments under its agreed action plan. Specific legal shortcomings include the insufficient criminalization of terrorist financing and a lack of targeted financial sanction mechanisms that meet international standards.

The FATF also highlighted concerns regarding Iran's approach to the Palermo Convention on transnational organized crime and the International Convention for the Suppression of the Financing of Terrorism, noting that certain domestic conditions and implementations do not align with global standards. The group has called on member nations to maintain effective countermeasures, including increased oversight of financial institutions and restrictions on certain banking and virtual asset service provider relationships related to these jurisdictions.