Financial Action Task Force tightens screws on Tehran over terror financing

The Financial Action Task Force’s ruling threatens investment in Iran. (Supplied)
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Updated 22 February 2020

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.

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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.


Palestinian official Erekat in critical, stable condition

Updated 16 min 2 sec ago

Palestinian official Erekat in critical, stable condition

  • Erekat was receiving artificial respiration in the intensive care unit at Israel’s Hadassah Medical Center
  • He was a senior adviser to late Palestinian leader Yasser Arafat and current President Mahmoud Abbas

JERUSALEM: Senior Palestinian official Saeb Erekat remained in critical but stable condition in an Israeli hospital Tuesday, his family said, after he was infected with the coronavirus.
Erekat’s family told the official Palestinian news agency WAFA that he was receiving artificial respiration in the intensive care unit at Israel’s Hadassah Medical Center.
Erekat, 65, has been one of the Palestinians’ most recognizable faces over the past several decades, serving as a senior negotiator in talks with Israel. He was also a senior adviser to late Palestinian leader Yasser Arafat and current President Mahmoud Abbas.
He was hospitalized Sunday at the Jerusalem hospital despite the Palestinian leadership’s decision earlier this year to sever ties with Israel over plans to begin annexing parts of the occupied West Bank as part of President Donald Trump’s Mideast plan.
The hospital said Monday that Erekat’s case was extremely challenging in light of his history of health problems, including a lung transplant in 2017. It said he suffered from a weak immune system, and a bacterial infection in addition to COVID-19.