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3/19/2020

Financial Action Task Force (FATF) Reiterates Terror Finance Risks in Iran, Clarifies “Stablecoin” Guidance, Issues AML/CFT Reports | U…

Financial Action Task Force (FATF) Reiterates Terror Finance
Risks in Iran, Clarifies “Stablecoin” Guidance, Issues AML/CFT
Reports
October 18, 2019

The U.S. commends FATF’s ongoing e orts to protect international financial system
Paris – Today the Financial Action Task Force (FATF) concluded its 31st plenary meeting with a
public statement that, among other things, reiterates terrorist financing risks emanating from
Iran. The FATF also clarified guidance on “stablecoins” and adopted virtual assets changes,
among other reports related to anti-money laundering/countering the financing of terrorism
(AML/CFT).
“For more than three years, Iran has repeated empty promises to the international community
to stop financing terrorism and fix its corrupt and opaque financial system,” said Marshall
Billingslea, Treasury Assistant Secretary for Terrorist Financing and Financial Crimes. “The
Financial Action Task Force has determined that enough is enough. More countermeasures on
Iran are now in force, and countries will be called upon to impose further financial restrictions to
protect the international financial system if Iran hasn’t ratified and fully implemented the key
treaties related to fighting money laundering and terrorist financing.”

FATF RE-IMPOSES SEVERAL COUNTER-MEASURES ON
IRAN
The FATF re-imposed several counter-measures on Iran designed to protect the international
financial system from abuse, and committed to continue monitoring Iran’s Action Plan. It also
warned that by February 2020, Iran must ratify the Palermo and Terrorist Financing Conventions
in line with FATF standards or the FATF will fully li the suspension of countermeasures.

FATF CLARIFIES GUIDANCE ON “STABLECOINS” AND
VIRTUAL ASSETS

https://home.treasury.gov/news/press-releases/sm797

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Financial Action Task Force (FATF) Reiterates Terror Finance Risks in Iran, Clarifies “Stablecoin” Guidance, Issues AML/CFT Reports | U…

As a follow-up to the groundbreaking changes to FATF standards regarding virtual assets
adopted under the U.S Presidency (July 2018 – June 2019), the FATF today also adopted
changes to its methodology that specify how countries and covered entities will be assessed for
their compliance with the relevant recommendations. These changes apply immediately to all
future assessments as well as follow-up reports for countries that have already undergone an
assessment. The FATF also issued a public statement clarifying that the FATF standards apply to
“stablecoins” and their service providers. The FATF is actively monitoring emerging digital
assets and agreed to examine their characteristics and risks, and consider further clarifications
on how the FATF standards apply to global “stablecoins” and their service providers.

FATF UPDATES REPORT ON ISIL AND AL-QAEDA
To assist FATF members and the FATF global network in combating ISIL and Al-Qaeda financing,
the FATF also adopted its eleventh non-public update on the financing of ISIL/Daesh, Al-Qaeda
and a iliate groups. This report details the evolving financial relationship between remaining
Daesh leadership in Iraq and Syria and its a iliate groups, as well as how Daesh continues to
exploit poorly supervised and unregistered money transmitters to move funds to finance its
terrorism around the world.

IDENTIFYING COUNTRIES WITH STRATEGIC AML/CFT
DEFICIENCIES
The FATF also called on all countries to apply countermeasures on North Korea due to the
ongoing money laundering, terrorist financing, and weapons of mass destruction proliferation
financing risks to the international financial system. In addition, the Plenary identified countries
that are working with the FATF to implement an Action Plan and strengthen their domestic
frameworks. FinCEN will release an advisory updating financial institutions to the FATF list of
jurisdictions with strategic AML/CFT deficiencies.

ADOPTION OF MUTUAL EVALUATION REPORTS OF RUSSIA
AND TURKEY
The Mutual Evaluation Reports of Russia and Turkey were also adopted and will be published on
the FATF website by the end of the year, representing the culmination of a peer review by FATF
members to assess both jurisdictions’ AML/CFT and counter-proliferation financing legal
frameworks as well as the measures in place to implement these frameworks e ectively.
https://home.treasury.gov/news/press-releases/sm797

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Financial Action Task Force (FATF) Reiterates Terror Finance Risks in Iran, Clarifies “Stablecoin” Guidance, Issues AML/CFT Reports | U…

Outcomes of the FATF Plenary, 16-18 October 2019.
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https://home.treasury.gov/news/press-releases/sm797

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