Published 17:26 IST, February 22nd 2020
Global watchdog FATF blacklists Iran for 'terrorism financing'
Financial Action Task Force(FATF) on Friday placed Iran on its blacklist after it failed to comply with international anti-terrorism financing norm.
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Financial Action Task Force(FATF) on Friday placed Iran on its blacklist after it failed to comply with international anti-terrorism financing norm, an international news agency reported. The move would not only deepen the country’s isolation from financial markets but also entail more scrutiny on all its transaction with the global watchdog. In addition to that, there would be tougher external auditing of all financing firms operating in the country and extra pressure on a few foreign banks and businesses that deal with Iran.
Iran has yet to ratify the UN’s Terrorist Financing and Palermo Conventions. As a result, the FATF calls on all countries to apply effective counter-measures against Iran. See more➡️ https://t.co/W6bd3LB8yg #FATF #FATFWeek #Iran pic.twitter.com/tTQaIccL5Z
— FATF (@FATFNews) February 21, 2020
After three years of warnings
The decision came after more than three years of warnings from the Paris based Financial Action taskforce urging the Islamic Republic to either enact terrorist financing conventions or see its reprieve from the blacklist lifted and some counter-measures imposed. According to a western diplomat, some consequences of being blacklisted include the higher cost of borrowing and isolation from the financial system.
Meanwhile, The United States lauded the taskforce’s decision and said that it was Tehran’s failure to adhere to FATF’S standards. Secretary of State, Mike Pompeo, in a statement to media reporters said that Iran must face consequences for its continued failure to abide by international norms.
On the other hand, Iran's central bank chief dismissed FATF's decision. Abdolnasser Hemmati, Governor of Central Bank of Iran told international media that the decision was politically motivated and wasn’t technical at all. He added that he can assure that it will have no impact on Iran's foreign trade and the stability of their exchange rate.
According to media reports, Iranian citizens were seen voting for a new parliament on February 21 with turnout seen as a key measure of support for Iran's leadership as sanctions weigh on the economy and isolate the country diplomatically.
(With inputs from agencies)
17:26 IST, February 22nd 2020