Gov't Announces AML/CFT Organizational Framework

EghtesadOnline: The Iranian government has issued a framework assigning tasks to executive bodies, as a part of an amendment to the Anti-Money Laundering and Countering the Financing of Terrorism Law.

News ID: ۷۴۸۷۳۴

16 October 2019

The framework was passed in the Cabinet's latest meeting on Saturday and approved by the judiciary.

As per the announcement, the National Risk Assessment Working Group is required to establish sector-specific working groups for assessing risks related to money laundering and terrorism financing in the operations of banking, capital market, insurance and other financial institutions, along with non-financial sectors, the government's news portal reported on Monday.

The working group is required to report AML/CFT-related risks to the concerned authorities, according to Financial Tribune.

Financial Intelligence Unit is also tasked with listing entities having risky business structures, businesses with large financial transactions, persons with risky political background and those who travel to risky locations.

FIU is a national institution, affiliated with the Economy Ministry, tasked with receiving and analyzing reports on suspicious transactions and other information regarding money laundering and crimes concerning financing of terrorism.

All the executive entities are required to provide access to FIU.

FIU is also required to create a list of risky locations in accordance with the defined criteria, including free trade zones, border checkpoints and customs offices; countries where no AML/CFT legal framework is being implemented; countries identified with major corrupt activities; and countries known as major financiers of terrorism or for hosting terrorists.

National Organization for Civil Registration, Ministry of Industries Mining and Trade, Central Bank of Iran and ICT Ministry were also required to work closely to develop online platforms and facilitate access for obtaining and extracting the needed information.

The amended Anti-Money Laundering Law was signed into law by President Hassan Rouhani in early 2018, after it was studied in detail by several entities, namely the specialized committees in government, parliament, the constitutional watchdog Guardians Council and the top arbiter, Expediency Council.

The law was ratified in February 2008 and during a decade of implementation, it became apparent that some of its aspects needed amendments.

In August 2018, amendments to the CFT (Combating Financing of Terrorism) Law of the Islamic Republic of Iran were also approved by the Guardians Council and were notified by the president to related ministries.

These amendments were one of the main pillars of Iran’s Action Plan, followed by amendments to the AML law and accession to Palermo and CFT conventions.