Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity

Advisory
FIN-2007-A001
Issued: October 16 2007
Subject: Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity The Financial Crimes Enforcement Network is issuing this advisory to U.S. financial institutions so that they may guard against threats of illicit Iranian activity related to money laundering, terrorist financing and weapons of mass destruction proliferation financing. The Financial Action Task Force (FATF)1 has recently determined that Iran’s lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system. These deficiencies, among others, have caused Iran to be identified in a statement of concern dated October 11, 2007. As noted in the statement, “FATF members are advising their financial institutions to take the risk arising from deficiencies in Iran’s AML/CFT regime into account for enhanced due diligence.” Iran is currently the only country for which FATF has publicly identified such a significant AML/CFT vulnerability. FATF called upon Iran “to address on an urgent basis its AML/CFT deficiencies, including those identified in the 2006 International Monetary Fund Article IV Consultation Report for Iran”2