US warns banks of terror financing in Pak, Iran

The United States has warned banks and other financial institutions in the country against shortcomings in measures against money laundering and terror financing in five nations, including Pakistan and Iran.

An advisory informed banks and other financial institutions operating in the US of "risks associated with deficiencies in the anti-money laundering and counter- terrorist financing regimes of ... Iran, Uzbekistan, Turkmenistan, Pakistan and Sao Tome and Principe".

The advisory, issued the Financial Crimes Enforcement Network, a part of the US Treasury Department, has referred to the recent statement issued by the Financial Action Task Force (FATF) -- a 34-member intergovernmental body established to combat money laundering and terrorist financing.

Going by FATF's website, India and Republic of Korea have observer status in the body. The 34 members include the US, the UK, Japan, Italy, China, Russia and Germany.

The FATF has said that it remains concerned about the money-laundering/terrorist-financing risks posed by Pakistan.

The intergovernmental body, however, welcomed the process under way to improve the anti-money laundering/ counter-terrorist financing regime in Pakistan

Regarding Iran, the FATF had raised concerns about the country's failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating financing of terrorism regime.

Source: The Hindu