Despite the Iranian regime’s approval of the Countering the Financing of Terrorism (CFT) convention, the Financial Action Task Force (FATF) announced in its latest statement that Iran remains on the list of high-risk countries for money laundering, terrorist financing, and the proliferation of weapons of mass destruction.
The organization urged all countries to continue their effective countermeasures against Tehran.
In the FATF statement released on Friday, October 24, it said that since February 2020, the Iranian regime’s reports submitted in January, August, and December 2024, as well as August 2025, have shown no substantial progress in Iran’s situation.
Financial Action Task Force (FATF): A New Wave of Disputes Among Iranian Regime Factions
FATF reminded that Iran had committed in 2016 to address deficiencies in its anti-money laundering and counter-terrorism financing systems; however, this plan expired in January 2018, and most of it remains unimplemented.
In October 2019, FATF called on its members to apply enhanced supervision, more precise reporting, and broader financial inspections for Iranian financial institutions.
On October 1, the Iranian regime’s Expediency Council conditionally approved Iran’s accession to the Countering the Financing of Terrorism (CFT) convention.
According to the council’s resolution, Iran’s accession to the convention would only be possible if it “does not contradict the country’s constitution or domestic laws.”
The law for Iran’s regime to join the CFT treaty was finally communicated to relevant executive agencies on October 21 by Masoud Pezeshkian, the regime’s president.
The CFT convention complements the United Nations Convention Against Transnational Organized Crime (known as the Palermo Convention), which was adopted to prevent the financing of terrorist activities and to facilitate international cooperation in identifying and cutting off sources of terrorist funding.
In May, the Expediency Council had also conditionally approved Iran’s accession to the Palermo Convention.
Iran’s Broad Reservations Incompatible with FATF Standards
FATF continued in its statement that although Iran had announced the ratification of the Palermo Convention, this action was insufficient.
According to FATF, Tehran’s extensive reservations regarding the provisions of the Palermo Convention have rendered its domestic implementation inconsistent with FATF standards.
Referring to UN Security Council resolutions concerning Iran’s non-compliance with its nuclear non-proliferation obligations, FATF reminded all countries that, according to its standards, they are obligated to identify and mitigate the risks arising from Iran’s financing of weapons proliferation.
FATF also, citing the ongoing threats related to terrorist financing from Iran and the incomplete implementation of Tehran’s action plan, once again called on its members to take effective measures against the Iranian regime.
The Financial Action Task Force, emphasizing the need for Iran’s immediate cooperation, urged Tehran to swiftly advance in fully implementing its action plan and to address its remaining deficiencies.
Full criminalization of terrorist financing, identification and freezing of terrorist assets, establishing an effective and binding system for customer identification and verification, and proving the capability of supervisory institutions to identify and punish unauthorized money transfer service providers are among FATF’s demands from the Iranian regime.
Meanwhile, on October 24, FATF removed South Africa, Mozambique, Burkina Faso, and Nigeria from its special monitoring list.
