The Financial Action Task Force (FATF), the global financial watchdog tasked with combatting money laundering, terrorist financing, and the proliferation of weapons of mass destruction, has reaffirmed that the clerical regime in Iran will remain on its blacklist due to its continued failure to comply with international anti-money laundering (AML) and counter-terrorist financing (CFT) standards.
In a statement released following its plenary meeting, FATF announced that it is fully reinstating countermeasures against Iran, urging all jurisdictions to apply strict financial restrictions to prevent Tehran from abusing the global financial system.
Since 2016, the Iranian regime has pledged to reform its AML/CFT regulations and align them with FATF’s global standards. However, despite repeated warnings and multiple deadline extensions, Tehran has failed to implement key requirements, including the ratification of the Palermo Convention and the Terrorist Financing Convention. These measures are critical in preventing the regime from funneling money to terrorist groups and illicit networks.
#Iran’s Internal Turmoil Over #FATF Reveals Deepening Cracks in Clerical Regimehttps://t.co/SMUn4FITod
— NCRI-FAC (@iran_policy) January 17, 2025
FATF’s statement emphasized: “Given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with FATF Standards, the FATF fully lifts the suspension of countermeasures and calls on its members and urges all jurisdictions to apply effective countermeasures, in line with Recommendation 19.”
This means that financial institutions and governments worldwide are now required to intensify scrutiny of transactions involving Iran, enforce enhanced due diligence, and apply severe restrictions on Iranian financial institutions.
FATF has expressed ongoing concerns that the clerical regime remains a major source of terrorist financing, fueling regional instability and posing a direct threat to the international financial system. The watchdog warned that until Tehran fully complies with global financial regulations, it will remain a high-risk jurisdiction subject to a call for action.
Kayhan Newspaper Reminds #Pezeshkian Who Holds the Final Say on FATF in #Iranhttps://t.co/5LzgiQ9p97
— NCRI-FAC (@iran_policy) September 20, 2024
“Until Iran implements the measures required to address the deficiencies identified with respect to countering terrorism-financing in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system.”
The regime’s continued defiance of FATF and its insistence on maintaining financial channels for terrorist organizations such as Hezbollah, the Houthis, and the IRGC’s Quds Force have resulted in its prolonged isolation from the global financial network.
In response to the FATF’s announcement, U.S. Treasury Secretary Scott Bassett welcomed the decision, stating: “The United States welcomes the FATF’s reaffirmation of countermeasures against Iran for the terrorist financing risk emanating from that country, as well as the continued work to strengthen the international financial system against all illicit finance,”
#Iran News: #FATF Identifies High-Risk Jurisdictions, Iran’s Regime Remains on Blacklisthttps://t.co/4Hz4yXx5Fa pic.twitter.com/ZISjK76JnN
— NCRI-FAC (@iran_policy) June 28, 2024
The Iranian regime’s failure to meet FATF’s standards has resulted in severe financial isolation, with foreign banks and businesses reluctant to engage in transactions with Iranian entities due to the risks of secondary sanctions and potential involvement in illicit activities. The lifting of FATF’s countermeasure suspension is expected to further restrict Iran’s access to international markets, exacerbating the regime’s economic crisis.
Iran’s economic outlook remains bleak with runaway inflation, a collapsing currency, and growing domestic discontent. The FATF’s latest decision reinforces the reality that as long as the clerical regime prioritizes terrorist financing over economic reform, it will remain locked out of the global financial system.
The FATF’s move sends a strong and unambiguous message—the Iranian regime must choose between continuing its rogue financial practices or facing permanent economic and diplomatic isolation. As global countermeasures tighten, Tehran finds itself with fewer financial lifelines, leaving it increasingly vulnerable to internal unrest and external pressure.