October 16, 2008
HP-1216

Treasury Responds to FATF's Call for Strengthened Measures Against Iran

Washington, DC--The U.S. Department of the Treasury today issued the following response to a statement issued by the Financial Action Task Force (FATF) on Iran during its plenary meeting in Rio de Janeiro, Brazil.

Today's statement by the FATF marks the fourth time in the past year that the organization has warned the world of the serious threat posed by Iran's lack of a sufficient anti-money laundering and counterterrorist financing regime.  

FATF expressed particular concern about Iran's lack of effort to combat terrorist financing and declared that this continues "to pose a serious threat to the integrity of the international financial system."  FATF further declared that "urgent action" by Iran to address these concerns is necessary.  As a result, FATF called for countries throughout the world to strengthen measures to protect their financial sectors from these risks posed by Iran.

The United States has repeatedly expressed its deep concerns about Iran's financial and material support to deadly terrorist groups.  We have designated Iranian entities – including Iranian state-owned Bank Saderat – under our domestic authority, Executive Order 13224, which targets terrorists and those providing financial, technological, or material support to terrorists or acts of terrorism.

Consistent with FATF's action, we will be employing additional actions to target the risk of terrorist financing emanating from Iran.  We encourage all countries to implement measures to protect the financial system from this urgent threat.

The FATF is the foremost standard setting body on preventing money laundering and terrorist financing. FATF's statement further evidences Iran's ongoing defiance of the international community.

Sustained action against Iran by the FATF, United Nations Security Council, European Union and others verifies that the international community's grave concerns about Iran's conduct transcend borders and politics.  

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The text of the FATF statement on Iran is available through the following link:

http://www.fatf-gafi.org/pages/0,2987,en_32250379_32235720_1_1_1_1_1,00.html

The June 2008, February 2008 and October 2007 FATF statements on Iran are available through the following link:

http://www.fatf-gafi.org/pages/0,3417,en_32250379_32237217_1_1_1_1_1,00.html

The Financial Action Task Force is an inter-governmental body whose purpose is the development and promotion of policies, both at the national and international levels, to combat money laundering and terrorist financing. The thirty-four members of the FATF are: Argentina; Australia; Austria; Belgium; Brazil; Canada; China; Denmark; the European Commission; Finland; France; Germany; Greece; the Gulf Cooperation Council; Hong Kong, China; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; the Kingdom of the Netherlands; New Zealand; Norway; Portugal; the Russian Federation; Singapore; South Africa; Spain; Sweden; Switzerland; Turkey; the United Kingdom; and the United States.

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