FATF Statement concerning Iran, Uzbekistan, Turkmenistan, Pakistan and São Tomé and Príncipe - 26 February 2009

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Iran |  Pakistan |  Sao Tomé and Principe |  Turkmenistan |  Uzbekistan


High-risk and other monitored jurisdictions

FATF Statement concerning Iran, Uzbekistan, Turkmenistan, Pakistan and São Tomé and Príncipe - 26 February 2009

Paris, 26 June 2009


The FATF welcomes Iran’s initial engagement with the international community on money
laundering. However, the FATF remains concerned by Iran’s failure to meaningfully address the
ongoing and substantial deficiencies in its anti-money laundering and combating the financing of
terrorism (AML/CFT) regime. The FATF remains particularly concerned about Iran’s failure to
address the risk of terrorist financing and the serious threat this poses to the integrity of the
international financial system. The FATF urges Iran to immediately and meaningfully address its
AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively
implementing suspicious transaction reporting (STR) requirements.

The FATF reaffirms its call on members and urges all jurisdictions to advise their financial
institutions to give special attention to business relationships and transactions with Iran,
including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF
further calls on its members and urges all jurisdictions to apply effective counter-measures to
protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks
emanating from Iran. Jurisdictions should also protect against correspondent relationships being
used to bypass or evade counter-measures and risk mitigation practices, and take into account
ML/FT risks when considering requests by Iranian financial institutions to open branches and
subsidiaries in their jurisdiction.

The FATF remains prepared to engage directly in assisting Iran to address its AML/CFT
deficiencies, including through the FATF Secretariat.


The FATF welcomes the process undertaken by Uzbekistan to adopt comprehensive AML/CFT
measures within a specific timeframe. Nevertheless, given that concrete measures to address
the identified deficiencies have not yet been implemented, the FATF reiterates its statement of
16 October 2008, calling on its members and urging all jurisdictions to strengthen preventive
measures to protect their financial sectors from the ML/FT risk emanating from Uzbekistan.


Despite a prolonged dialogue with the FATF and other international institutions, Turkmenistan
has not yet made progress in adopting AML legislation. Financial institutions should remain
aware that the lack of an AML/CFT regime in Turkmenistan constitutes an ML/FT vulnerability in
the international financial system and should take appropriate measures to address this risk.
Turkmenistan is urged to adopt without further delay a comprehensive AML/CFT regime that
meets international AML/CFT standards. Turkmenistan is encouraged to continue to work
closely with the Eurasian Group and the International Monetary Fund to achieve this.


The FATF reaffirms its public statement of 28 February 2008 regarding the ML/FT risks posed by
Pakistan. The FATF welcomes the process underway in Pakistan to improve its AML/CFT regime.
The FATF encourages Pakistan to continue to fully co-operate with the World Bank and the Asia
Pacific Group on Money Laundering (APG) on its mutual evaluation process.

São Tomé and Príncipe

The FATF welcomes São Tomé and Príncipe’s recent steps toward addressing identified AML
deficiencies, in particular, through the adoption of an AML law in November 2008. The FATF
urges São Tomé and Príncipe to address the remaining AML/CFT deficiencies, particularly
relating to terrorist financing.