04 October, 2018
A delegation of Rosfinmonitoring took part in a regular meeting of FATF experts with the Iranian inter-agency delegation (Financial Intelligence Unit, Ministry of Foreign Affairs, Ministry of Economy and Finance, and Central Bank), held on September 27, 2018 in Rome. Iran briefed the participants on measures taken in recent months to implement the action plan to improve the domestic AML/CFT system. Among Iran's fundamental achievements was the entry into force on August 11, 2018 of substantial amendments to the Law on the Suppression of the Financing of Terrorism, which address multiple outstanding issues.
In particular, Iran, fully in line with the FATF standards, has criminalized not only the financing of terrorist acts, but also the financing of terrorist organizations and individual terrorists, even where their actions are not linked to any specific terrorist act or acts, on the understanding that this offence shall extend to any funds derived from either legitimate or illegitimate sources. Iran has also removed exemptions that allowed persons to avoid criminal liability for terrorist financing in cases where the purpose of their actions was to "fight against foreign occupation, colonialism and racism". New provisions also criminalize terrorist financing regardless of whether the accused is in the same country in which the terrorist is located or where terrorist act(s) was(were)/will be committed.
However, some points of the action plan remain outstanding. For example, Tehran has yet to accede to the UN Convention against Transnational Organized Crime (Palermo Convention) and the International Convention for the Suppression of the Financing of Terrorism (ICSFT). Both bills are in the final stages of approval.
In its speeches, the Russian delegation focused on the indisputable progress made by Iran, drawing certain parallels with the positive dynamics in implementing the Joint Comprehensive Plan of Action, with excerpts from the recent statement by F. Mogherini in New York made after the negotiations between the UK, Germany, Iran, China, Russia and France.
The Iranian delegation responded to all questions in a professional manner, taking time to outline in detail the complexity of its legislative process, and assured the participants that the necessary amendments, as well as the bills for accession to the Palermo Convention and the ICSFT, would become law before the end of the year.
The final decision on the report on Iran's progress in implementing the Action Plan is to be taken at the FATF plenary meeting in Paris on October 14-19, 2018.