Iran may face banking problems with FATF member countries

Finance Materials 5 November 2019 18:00 (UTC +04:00)

TEHRAN, Iran, Nov. 5


Iran would face banking problems with members of the Palermo Convention if it refuses to join the Financial Action Task Force (FATF) and Combating the Financing of Terrorism (CFT) convention, said Iran’s representative in the World Chambers Federation Pedram Soltani, Trend reports citing ILNA.

"The conspiracy theory that Iran's accession to the international convention would hurt the country has caused us to be isolated with relation to global organizations and had a long-term effect," said Soltani.

"If Iran follows the instructions of the FATF group, it can easily be removed from the black list, and currently the important instruction is accession to Palermo Convention and Combating the Financing of Terrorism (CFT) convention. It would clear Iran from the money laundering and organized crime accusations," he added.

"The countries that work with Iran have accepted the FATF regulation and requirements that mean their banking system are adapting their mechanisms," he said.

"Currently working with China and Persian Gulf countries banks has become more difficult, since their financial systems are adapted to FATF and if Iran loses the remaining opportunity and becomes blacklisted, then these countries would become more sensitive in working with Iran's banking system," he added.

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.