Iran, funding the terrorist organisations, continues to remain in the FATF

Paris: The Financial Action Task Force (FATF) announced that Iran, violating the counter-terrorism economic rules despite being warned for three consecutive years, was being included in the blacklist. This FATF action will reduce the aids received by Iran on the international level and its economy will face more crisis. It is being claimed that action against Iran is also a warning for neighbouring Pakistan.

In 2016, FATF suggested blocking of terror funding to Iran. FATF had appealed that Iran needs to keep its financial transactions transparent and should stop supporting the terrorist organisations. FATF has been issuing warnings to Iran in this respect, continuously for three years. The organisation announced in its meeting at Paris- ‘But Iran has completely failed to abide by the rules of Palermo and Terrorist Financing Convention and act as per FATF norms. Therefore, Iran is being included in the blacklist, and the other countries also should abide by the action taken against Iran.’

Henceforth, Iranian financial transactions will be under the scanner of international organisations. At the same time, Iranian transactions with foreign banks and companies will be affected. Iran could be banned from international trade. Iran has dismissed the FATF decision and has said that this decision has been taken because of political hostility.

US Secretary of State Mike Pompeo has welcomed the FATF decision. Pompeo said that this action against Iran, violating the FATF regulations and funding the terrorist organisations, was necessary. Whereas, reactions are expected from China, Russia, the United Kingdom, France and Germany, having trade relations with Iran.

Iran provides millions of dollars to terrorist organisations like the Houthi rebels in Yemen, extremist groups in Syria-Iraq, Hezbollah from Lebanon and Hamas from the Gaza Strip. The United States and Israel had exposed this Iranian nexus with terrorists last year. Israeli Prime Minister Benjamin Netanyahu had suggested that Iran should spend that money for the welfare of its people rather than squandering it on these terrorist organisations.