TEHRAN (Dispatches) — Paris-based Financial Action Task Force’s (FATF) decision on Friday to place Iran on its blacklist will have no impact on the country’s foreign trade, head of the Central Bank of Iran Abdolnasser Hemmati said.
"The decision is politically motivated and not a technical decision … I can assure our nation that it will have no impact on Iran’s foreign trade and the stability of our exchange rate,” Hemmati said.
Earlier, Hemmati also shrugged off the possible outcome of an ongoing meeting of the Paris-based Financial Action Task Force (FATF), saying even if it blacklists Iran, the move would have no effect on the country’s foreign exchange market.
"I have already said that since 90% of our trade transactions are conducted through unsanctionable routes, whatever happens in the FATF (meeting) cannot have any impact on our foreign exchange market at this point in time,” the top banker said.
"In October 2019, the FATF called upon its members and urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran; introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions; and require increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in Iran,” FATF official website reported.
"Now, given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, the FATF fully lifts the suspension of counter-measures and calls on its members and urges all jurisdictions to apply effective counter-measures, in line with Recommendation 19,” it added.
"Iran will remain on the FATF statement on [High-Risk Jurisdictions Subject to a Call for Action] until the full Action Plan has been completed.”
"If Iran ratifies the Palermo and Terrorist Financing Conventions, in line with the FATF standards, the FATF will decide on the next steps, including whether to suspend countermeasures.”
FATF meeting which started in Paris reviewed the situation of Iran’s commitment to international regulations against money laundering and financing terrorism also called the AML/CFT.
The FATF meeting attended by over 800 delegates from 205 countries. International organizations such as the UN, International Monetary Fund and World Bank were also represented at the meeting.