Guidance to Financial Institutions on the Continuing Money Laundering Threat Involving Illicit Iranian Activity (FinCEN Advisory – FIN-2008-A002)

Advisory
FIN-2008-A002
Issued: March 20, 2008
Subject: Guidance to Financial Institutions on the Continuing Money Laundering Threat Involving Illicit Iranian Activity The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to supplement information previously provided1 on serious deficiencies present in the anti-money laundering systems of the Islamic Republic of Iran. The Financial Action Task Force (FATF) stated in October 2007 that Iran’s lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability in the international financial system. In response to the FATF statement, Iran passed its first AML law in February 2008. The FATF, however, reiterated its concern about continuing deficiencies in Iran’s AML/CFT system in a statement on February 28, 2008. Further, on March 3, 2008, the United Nations Security Council passed Resolution 1803 (UNSCR 1803), calling on all states to exercise vigilance over activities of financial institutions in their territories with all banks domiciled in Iran and their branches and subsidiaries abroad. The FATF statement, combined with the UN’s specific call for vigilance, illustrates the increasing risk to the international financial system posed by the Iranian financial sector, including the Central Bank of Iran. Iran’s AML/CFT deficiencies are exacerbated by the Government of Iran’s continued attempts to conduct prohibited proliferation related activity and terrorist financing. Through state-owned banks, the Government of Iran disguises its involvement in proliferation and terrorism activities through an array of deceptive practices specifically designed to evade detection. The Central Bank of Iran and Iranian commercial banks have requested that their names be removed from global transactions in order to make it more difficult for intermediary financial institutions to determine the true parties in the transaction. They have also continued to provide financial services to Iranian entities designated by the UN Security Council in its Resolutions 1737 and 1747 as entities involved in nuclear proliferation activities. The U.S. Department of the Treasury is particularly concerned that the Central Bank of Iran may be facilitating transactions for sanctioned Iranian banks. UNSCR 1803 calls on member states to exercise vigilance over the activities of financial institutions in their territories with all banks domiciled in Iran, and their branches and subsidiaries abroad. While Bank Melli and Bank Saderat were specifically noted, the United States urges all financial institutions to take into account the risk arising from the deficiencies in Iran’s AML/CFT regime, as well as all applicable U.S. and international sanctions programs, with regard to any possible transactions with the following Iranian institutions:
1 See “Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity,” FIN-2007-A001, October 16, 2007.

[This list has been updated as of June 22, 2010. Please see FIN-2010-A008 at (http://www.fincen.gov/statutes_regs/guidance/html/fin-2010-a008.html)] NAME LOCATION AGRICULTURAL BANK (a.k.a. BANK KESHAVARZI) Tehran, Iran AGRICULTURAL COOPERATIVE BANK OF IRAN (a.k.a. BANK TAAVON KESHAVARZI IRAN) Tehran, Iran AGRICULTURAL DEVELOPMENT BANK OF IRAN (a.k.a. BANK JOSIAIYI KESHAHVARZI) Tehran, Iran ARIAN BANK (a.k.a. ARYAN BANK) Kabul, Afghanistan BANCO INTERNACIONAL DE DESARROLLO SA Caracas, Venezuela BANK KARGOSHAEE Tehran, Iran BANK MASKAN (a.k.a. HOUSING BANK (of Iran)) Tehran, Iran BANK MELLAT Tehran, Iran BANK MELLAT Seoul, South Korea BANK MELLAT Ankara, Istanbul, Izmir, Turkey BANK MELLI IRAN Tehran, Iran BANK MELLI IRAN Paris, France BANK MELLI IRAN Hamburg, Germany BANK MELLI IRAN Central, Hong Kong BANK MELLI IRAN Baghdad, Iraq BANK MELLI IRAN Muscat, Oman BANK MELLI IRAN Al Ain, Deira, Dubai City, Fujairah, Ras al-Khaimah, and Sharjah, United Arab Emirates BANK MELLI IRAN ZAO Moscow, Russia BANK OF INDUSTRY AND MINE (of Iran) (a.k.a. BANK SANAD VA MADAN) Tehran, Iran BANK REFAH (f.k.a. WORKERS WELFARE BANK, f.k.a. BANK REFAH KARGARAN) Tehran, Iran BANK SADERAT IRAN Tehran, Iran BANK SADERAT Paris, France BANK SADERAT Frankfurt, Hamburg, Germany BANK SADERAT Athens, Greece BANK SADERAT Baalbak, Beirut, Saida, Lebanon BANK SADERAT Muscat, Oman BANK SADERAT Doha, Qatar BANK SADERAT Ashgabat, Turkmenistan BANK SADERAT Abu Dhabi, Ajman, Al Ain, Dubai City, Sharjah, United Arab Emirates

BANK SADERAT PLC London, United Kingdom
BANK SADERAT TASHKENT Tashkent, Uzbekistan
BANK SEPAH Tehran, Iran
BANK SEPAH Paris, France
BANK SEPAH Frankfurt, Germany
BANK SEPAH Rome, Italy
BANK SEPAH INTERNATIONAL PLC London, United Kingdom BANK TEJARAT Tehran, Iran BANK TEJARAT Paris, France BANK TEJARAT Dusanbe, Tajikistan THE CENTRAL BANK OF IRAN (a.k.a. BANK MARKAZI JOMHOURI ISLAMI IRAN) Tehran, Iran EUROPAEISCH-IRANISCHE HANDELSBANK AG (f.k.a. DEUTSCH￾IRANISCHE HANDELSBANK AG) Hamburg, Germany EUROPAEISCH-IRANISCHE HANDELSBANK AG (f.k.a. DEUTSCH￾IRANISCHE HANDELSBANK AG) Tehran, Iran EXPORT DEVELOPMENT BANK OF IRAN (a.k.a. BANK TOWSEH SADERAT IRAN) Tehran, Iran FUTURE BANK B.S.C. Manama, Bahrain IRAN OVERSEAS INVESTMENT BANK PLC (a.k.a. IRAN OVERSEAS INVESTMENT CORPORATION LIMITED) London, United Kingdom KARGOZARI BANK TEJARAT Tehran, Iran MELLAT BANK DB AOZT (a.k.a. MELLAT BANK S/B CJSC) Yerevan, Armenia MELLAT BANK S/B CJSC (a.k.a. MELLAT BANK DB AOZT) Yerevan, Armenia MELLI BANK PLC. London, United Kingdom PERSIA INTERNATIONAL BANK PLC. London, United Kingdom PERSIA INTERNATIONAL BANK PLC. Dubai City, United Arab Emirates Privately Owned Iranian Financial Institutions NAME LOCATION BANK PASARGAD Tehran, Iran EN BANK PJSC (a.k.a. EGHTESAD-E-NOVIN BANK) Tehran, Iran KARAFARIN BANK Tehran, Iran PARSIAN BANK Tehran, Iran POST BANK OF IRAN Tehran, Iran SAMAN BANK CORPORATION Tehran, Iran BANK SARMAYE Tehran, Iran

Financial institutions also are reminded of the existing U.S. sanctions that are administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) with respect to Iran and the Government of Iran, including but not limited to Iranian Government￾owned banks, as well as other sanctions imposed on Iranian entities that have been linked to terrorist activity and the proliferation of weapons of mass destruction. Information about these sanctions is available on OFAC's website at http://www.treasury.gov/offices/enforcement/ofac/.