SEC supports anti-money laundering drive

Thursday, January 11, 2007 - ©2005 IranMania.com

LONDON, January 11 (IranMania) - Money laundering is the practice of engaging in specific financial transactions in order to conceal the identity, source and/or destination of money and is a main operation of underground economy.

Stating the above to ISNA, Mohammad Baqer Nobakht, deputy head of economic research at the Economic Research Center in the State Expediency Council, said the fight against money laundering bill was ratified by the Seventh Parliament in line with Article 49 of the Iranian Constitution. Ratification of the bill is indeed very important in economic, social and legal terms.

He added the bill was ratified by the Majlis but because of disapproval of the Guardian Council of Note A and B of Article 70, it was returned to the parliament.

Some of these issues were resolved at the previous parliament. It is now under review at the Seventh Parliament with the help of a special committee at the economic commission. They are now working round the clock to prepare it at the earliest for final approval at the Guardian Council.

He further stated that in the past, the term ’money laundering’ was applied only to financial transactions related to organized crime. Today its definition is often expanded by government regulators to include any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting. As a result, the illegal activity of money laundering is now recognized as potentially practiced by individuals, small and large businesses, corrupt managers, and members of organized crime through a complex network of shell companies and trusts.

He however maintained that when ratifying the bill it is also necessary to take into account the international law in this respect in order to take it much more comprehensive.

In conclusion he said Iran is still behind other regional states in terms of fighting money laundering.

The current bill is very important and the State expediency Council is determined to approve it at the earliest, he concluded.

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