Today, the Financial Action Task Force (FATF) responded to Iran’s willful failure to address its systemic money laundering and terrorist financing deficiencies by requiring increased supervision of Iran-based financial institutions. The Islamic Republic of Iran regularly seeks to use deception and subterfuge to fund its illicit activities, threatening the integrity and security of the international financial system.
The Islamic Revolutionary Guard Corps continues to engage in large-scale illicit financing schemes to fund its malign activities. This includes its support for U.S.-designated terrorist groups like Hizbollah and Hamas. The IRGC’s illicit financing schemes are facilitated at the highest levels of Iran’s government. The international community has made clear that Iran must live up to its commitments to behave like a normal nation.
The FATF also reaffirmed its concern with terrorist financing risk emanating from Iran and the threat it poses to the international financial system. Three years after Iran committed to an action plan with the FATF, the majority of its necessary work remains incomplete. As I have stated before, Iran must ratify the Palermo and Terrorist Financing Conventions in line with the FATF standards or face additional measures.