Terrorism Financing Watchdog Extends Deadline for Iranian Compliance

The international task force says Iran must end exemption on terrorism funding for groups 'attempting to end foreign occupation, colonialism and racism'

Iranian President Hassan Rohani at a cabinet meeting in Tehran, Iran, June 19, 2019.

An international task force against money-laundering and the funding of terrorism on Friday gave Iran until October to comply with United Nations conventions or face stricter financial oversight. 

The Financial Action Task Force (FATF), meeting in Florida, acknowledged that Iran had made progress but said the country has not adequately criminalized terrorist financing among other issues. 

The group of 38 states previously set a June deadline for Iranian compliance at its meeting in February. 

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Iran will remain on the watchdog's blacklist, along with North Korea.

FATF said Iran must remove an exemption for terrorism funding restrictions on groups "attempting to end foreign occupation, colonialism and racism."

If Tehran is not compliant by October, the FATF will increase external audit requirements for financial groups with branches in Iran, among other measures. 

FATF said it would "continue the suspension of counter-measures" against Iran, but is calling on its member states "to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran." 

"The Islamic Republic of Iran regularly seeks to use deception and subterfuge to fund its illicit activities, threatening the integrity and security of the international financial system," US Secretary of State Mike Pompeo said in a statement Friday.