Iran Economy Ministry Solicits Innovative AML Solutions

EghtesadOnline: The Economy Ministry's Financial Intelligence Unit has invited innovators and knowledge-based companies active in anti-money laundering compliance services to help the office develop smart platforms.

News ID: ۷۸۶۴۱۴

05 May 2021

Those who have developed applications, or have innovative ideas that can help the body in data mining, monitoring and detecting illegal activities are requested  to help, the ministry said in a notice posted on its website shada.ir.

Established in 2008, the FIU is affiliated to the Iran High Council on Anti-Money Laundering and headed by the economy minister. It has a mandate to look into suspicious money transactions.

In tandem with the Economy Ministry, the Central Bank of Iran has tightened restrictions on circulation of money to meet anti-money laundering requirements.

Blocking bank transactions lacking full ID of customers, increasing oversight on point-of- sale terminals and setting cap on daily transactions by bank customers are among the restrictions.

The CBI earlier made it mandatory for banks and credit institutions to set up special units to deal with suspected money laundering issues.

Due to the sanctions against Iran's financial and banking sector and its isolation from global business, the country has lagged behind in implementing acceptable anti money-laundering laws complying with international financial institutions. However, the Rouhani administration is keen on upgrading such laws and those related to counter-terrorism financing.

The Financial Action Task Force, the global anti-money laundering body, has asked Iran to pass four bills as part of the “Action Plan” to get out of its blacklist.

President Hassan Rouhani’s administration has enacted amendments to the counter-terrorist financing and anti-money laundering rules. But the government has failed to get approval from the main legislative body for the two remaining bills, namely Palermo (convention against transnational organized crime) and terrorist financing conventions (CFT), despite the fact that the key bills were passed both by the government and parliament.

The two remaining bills were rejected by the Guardians Council, a watchdog that ensures laws are in line with Iran’s Constitution and Islamic law - and were sent to Expediency Council for a final decision. EC is a constitutional arbiter between the Majlis and the Guardians.