Iran Steps Up Efforts to Combat Terrorism Financing and Strengthen Anti-Money Laundering Capabilities

The Islamic Republic of Iran is taking a significant step forward in its fight against money laundering and the financing of terrorism, with the United Nations Office on Drugs and Crime (UNODC) providing technical assistance to enhance its anti-money laundering (AML) and countering the financing of terrorism (CFT) capabilities.

A Key Transit Point for Opiate Trafficking

Iran’s geographical location makes it a crucial transit point for opiate trafficking from Afghanistan to Europe and other parts of the world, generating massive profits for organized crime groups. To prevent these illegal proceeds from infiltrating the legal financial system, UNODC is assisting Iran in enhancing its AML/CFT capacities.

Money Laundering: A Threat to Societies

Money laundering, a method used by criminals to disguise illegal income and protect their assets, also fuels corruption and organized crime, distorting markets and harming society as a whole. Terrorist organizations rely on money laundering techniques to sustain themselves and carry out attacks.

Strengthening Anti-Money Laundering Framework

In 2008, Iran adopted its AML legislation, with the bylaws ratified in 2009, resulting in the establishment of the High Council on Anti-Money Launderling, Executive Secretariat, and Iranian Financial Intelligence Unit. Since 2007, UNODC has been providing training and seminars to Iranian officials and experts on AML/CFT best practices.

Recent Seminar Highlights Progress

A recent two-day seminar organized by UNODC in cooperation with Iran’s Ministry of Economic Affairs and Finance focused on “Preventive and Administrative Measures on Money Laundering and Financing Terrorism for Financial Institutions, Professions, Reporting Entities and Subjects to the Law.” The event brought together over 138 professionals from various organizations.

Next Steps

Iran’s Deputy Minister of Economic Affairs and Finance expressed gratitude for UNODC’s assistance, highlighting the country’s progress in developing its anti-money laundering framework. The UNODC representative emphasized the need for Iran to ratify the United Nations Convention against Transnational Organized Crime and its Protocols as well as the International Convention against the Financing of Terrorism.

Upcoming Workshops and Seminars

The seminar will be followed by additional workshops and seminars in 2012, with UNODC also set to assist Iran in conducting an AML/CFT self-assessment from January 16-18.