Financial Action Task Force tightens screws on Tehran over terror financing

Financial Action Task Force tightens screws on Tehran over terror financing
The Financial Action Task Force’s ruling threatens investment in Iran. (Supplied)
Short Url
Updated 22 February 2020

Financial Action Task Force tightens screws on Tehran over terror financing

Financial Action Task Force tightens screws on Tehran over terror financing
  • Watchdog says Iran failed to fulfill its promises to curb terror financing despite repeated warnings
  • Iran central bank chief Abdolnasser Hemmati said the decision will not affect the country

PARIS: An international agency monitoring terrorism funding announced tough new financial scrutiny of Iran on Friday and added seven countries to a watch list.

Pakistan, meanwhile, won a reprieve from the Financial Action Task Force at its meetings in Paris this week. The monitoring body gave Pakistan’s government another four months to crack down on terrorism financing and did not put the country on a damaging “black list.”

Iran and North Korea are the only two countries currently on the agency’s black list. That means international financial transactions with those countries are closely scrutinized, making it costly and cumbersome to do business with them. International creditors can also place restrictions on lending to black-listed countries.

The FATF decided on Friday to further tighten the screws on Iran, imposing extra measures that could require audits or more transactions and make it even harder for foreign investors to do business there.

The group made the decision because Iran failed to fulfill its promises to the FATF despite repeated warnings. In a statement, the organization said that Iran hasn’t done enough to criminalize terrorist financing, require transparency in wire transfers or freeze terrorist assets targeted by UN sanctions.

Opinion

This section contains relevant reference points, placed in (Opinion field)

The head of Iran’s central bank, Abdolnasser Hemmati, said the decision will not affect the country.

“Such incidents will create no problem for Iran’s foreign trade and currency,” he said in a statement. Hemmati said the FATF decision was based on the “enmity” of the US and Israel toward Iran.

Pakistan, meanwhile, has been trying to get off the FATF gray list, the color code for countries that are only partially fulfilling international rules for fighting terrorism financing and money laundering.

Pakistan’s government has been working to shore up the country’s faltering economy and attract foreign investment and loans, making the FATF’s assessment especially important.

The FATF said that Pakistan had fulfilled 14 of 27 steps to get off the watch list, but still must do more to track money transfers and investigate and prosecute terrorism financiers.

The Pakistani government said in a statement that it “stands committed for taking all necessary action required” to fulfill the remaining steps. “A strategy in this regard has been formulated and is being implemented.”

The Financial Action Task Force also put seven new countries on its gray list because of gaps or failures in stemming the financing of terrorist groups or money laundering. The countries — Albania, Barbados, Jamaica, Mauritius, Myanmar, Nicaragua and Uganda — were ordered to take a series of legal and other steps to be removed from the list and avoid further financial punishment.


Lebanon approves law to import vaccines as coronavirus hits new record

Lebanese Parliament Speaker Nabih Berri heads a legislative session, as Lebanon's parliament approved a law that paves the way for the government to ink deals for coronavirus vaccinations, at UNESCO Palace in Beirut, Lebanon January 15, 2021. (Reuters)
Lebanese Parliament Speaker Nabih Berri heads a legislative session, as Lebanon's parliament approved a law that paves the way for the government to ink deals for coronavirus vaccinations, at UNESCO Palace in Beirut, Lebanon January 15, 2021. (Reuters)
Updated 16 min 18 sec ago

Lebanon approves law to import vaccines as coronavirus hits new record

Lebanese Parliament Speaker Nabih Berri heads a legislative session, as Lebanon's parliament approved a law that paves the way for the government to ink deals for coronavirus vaccinations, at UNESCO Palace in Beirut, Lebanon January 15, 2021. (Reuters)

BEIRUT: Lebanon’s parliament approved a draft law allowing imports of coronavirus vaccines as the tiny nation hit a new record in case numbers Friday and more hospitals reported they were at full capacity.
The new daily toll of 6,154 cases and 44 deaths came on the second day of a nationwide 11-day curfew that the government and doctors hope will reign in the dramatic surge of the virus.
Lebanon, a country of about 6 million people, has witnessed a sharp increase of cases in recent weeks, after some 80,000 expatriates flew in to celebrate Christmas and New Year.
During the holiday season, restrictions were eased to encourage spending by expatriates amid a suffocating economic and financial crisis, the worst in Lebanon’s modern history.
On Friday, the American University Medical Center, one of Lebanon’s largest and most prestigious hospitals, said in a statement that its health care workers were overwhelmed. The hospital’s ICUs and regular coronavirus units have reached full capacity and so did the emergency room, it said.
“We are unable to find beds for even the most critical patients,” the hospital said, urging people in Lebanon to help by taking extreme precautionary measures to “overcome the catastrophe we are facing.”
Mazen El-Sayed, an associated professor in the department of emergency medicine, described the situation as “tragic,” anticipating that the next two weeks would be even more dire.
In southern Lebanon, the Ragheb Harb Hospital also said that its COVID-19 units were now. “We are working beyond our capacity. The situation is very dangerous,” the hospital said in a statement.
The curfew, which began Thursday, is the strictest measure Lebanon has taken since the start of the pandemic. But many have expressed concern the measures have come too late — many hospitals have already reached maximum capacity for coronavirus patients, some have run out of beds, oxygen tanks and ventilators while others have halted elective surgeries.
Lebanon was able to contain the virus in its early stages but the numbers started climbing after measures were eased in early July and following the massive deadly blast at Beirut’s port in August.
Following bureaucratic delays, the country now is putting hopes on vaccines that are expected to start arriving next month.
Parliament’s approval opens the way for imports of vaccines from around the world, including the Pfizer-BioNTech vaccine.
Health Minister Hamad Hassan, who is hospitalized with the coronavirus, had said that once the draft law is approved, the first deliveries of vaccines should start arriving in February.
Lebanon has reserved 2.7 million doses of vaccines from multiple international companies and 2.1 million to be provided by Pfizer, Diab’s office says.
Lebanon has registered nearly 243,000 coronavirus cases and some 1,825 confirmed deaths.