The world’s financial watchdog has extended a waiver for punitive measures against Iran for another six months but refused to remove the country from its blacklist.
The Paris-based the Financial Action Task Force (FATF) had been weighing Tehran’s request for the lifting of so-called countermeasures for some time but a flurry of recent visits by a top US official to France and other European countries thwarted the bid.
Change of heart
Iran’s removal from the blacklist had gained support in European capitals in recognition of the steps Tehran has taken in recent years to enact legislation barring terrorist financing and money laundering.
However, the US sent the official to France, Germany, the Netherlands and Belgium ahead of a plenary meeting of the task force Friday to warn that keeping Iran on the FATF blacklist was a top priority, and that Washington would aggressively pursue that policy.
As a result, the FATF decided to continue the suspension of countermeasures, taking into account the fact that Iran has draft legislation currently before Parliament, but did not remove the country from the list in a decision which many believe is political.
The FATF suspended its punitive measures for a year in 2016 when Iran reached a landmark nuclear deal and promised to step up its fight on money-laundering. The task force extended the waiver last July and again on Friday.
The Iranian government hopes that the exit from the FATF blacklist would remove one hurdle to foreign investment. Critics of the government, however, say membership in the Financial Action Task Force has not only failed to attract investment, but it has also exposed various institutions to extraterritorial regulations and penalties.