• Research
  • Emissary
  • About
  • Experts
Carnegie Global logoCarnegie lettermark logo
DemocracyIran
  • Donate
{
  "authors": [
    "Jarrett Blanc"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Malcolm H. Kerr Carnegie Middle East Center"
  ],
  "collections": [],
  "englishNewsletterAll": "americanStatecraft",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "ASP",
  "programs": [
    "American Statecraft"
  ],
  "projects": [],
  "regions": [
    "North America",
    "United States",
    "Middle East",
    "Iran"
  ],
  "topics": [
    "Political Reform",
    "Global Governance",
    "Foreign Policy"
  ]
}

Source: Getty

In The Media

As Sanctions Loom, Iran Given More Time to Combat Terrorist Financing

The United States, which currently holds the Financial Action Task Force presidency and wants to impose “unprecedented financial pressure” on Iran, almost certainly opposed the 2019 extension.

Link Copied
By Jarrett Blanc
Published on Oct 22, 2018
Program mobile hero image

Program

American Statecraft

The American Statecraft Program develops and advances ideas for a more disciplined U.S. foreign policy aligned with American values and cognizant of the limits of American power in a more competitive world.

Learn More

Source: Axios

On Oct. 19, the Financial Action Task Force (FATF), an intergovernmental organization that sets standards for countries to combat money laundering and terrorist financing, gave Iran an extension until February 2019 to implement its plan to address “strategic deficiencies” in these areas.

Why it matters: The U.S., which currently holds the FATF presidency and wants to impose “unprecedented financial pressure” on Iran, almost certainly opposed the extension. Washington’s inability to carry the debate demonstrates the diplomatic shortcomings of its unilateral approach to Iran.

The background: Iran was on FATF’s blacklist and subject to countermeasures that all but shut Iran off from licit international finance from 2008 through 2016. For much of that time, Iran’s only company was North Korea, though many of Iran’s shortcomings were more comparable to those of Pakistan, a country that moved on and off the much less effectual “gray list” over the same period.

In 2016, FATF gave Iran one year to implement an action plan to address terrorist financing, during which time they would stay on the blacklist but without countermeasures. FATF also gave Iran access to international bank transactions that were difficult and expensive, but not impossible.

That grace period has been extended repeatedly as Iran makes slow progress on its action plan. Most recently, the government won parliamentary approval for a new law to counter terrorist financing. But FATF will not complete its evaluation of the law until it is ratified by Iran’s top clerical council.

What’s next: Even if the new law is ratified, Iran will face deep skepticism from other FATF members, as it's thought unlikely to take steps — either in law or practice — that discourage providing financial support to long-time terrorist clients such as Hezbollah. The intense opposition FATF has encountered from Iranian hardliners does suggest, however, that the proposed reforms could have some real bite if implemented.

Reality check: After the Iran nuclear deal led to sanctions relief, Tehran realized that it needed FATF liberalization to foster business with Europe and elsewhere. But now that the U.S. is re-imposing sanctions, Iran will struggle to sustain trade regardless of what FATF does. Europe is offering political support and a modest trade channel if Iran continues to meet its nuclear deal obligations, but that support will be harder to sustain if Iran slips back into the FATF countermeasures category.

This article was originally published in Axios.

About the Author

Jarrett Blanc

Former Senior Fellow, Geoeconomics and Strategy Program

Jarrett Blanc was a senior fellow in the Geoeconomics and Strategy Program at the Carnegie Endowment for International Peace.

    Recent Work

  • Research
    Conflict Zones in the Time of Coronavirus: War and War by Other Means
      • +10

      Jarrett Blanc, Thomas de Waal, Karim Sadjadpour, …

  • Commentary
    The Best Books of 2020, as Chosen by Carnegie Scholars
      • +3

      Dan Baer, Rosa Balfour, Jarrett Blanc, …

Jarrett Blanc
Former Senior Fellow, Geoeconomics and Strategy Program
Jarrett Blanc
Political ReformGlobal GovernanceForeign PolicyNorth AmericaUnited StatesMiddle EastIran

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

  • Wide shot of people standing on a stage
    Commentary
    Emissary
    Can America First Be Exported to Europe?

    The illusion of reproducing the ideology would come at the cost of the continent’s prosperity.

      • Giovanna De Maio

      Giovanna De Maio

  • Commentary
    Diwan
    Young and Restless in the Middle East

    In an interview, Mayssoun Sukarieh discusses youths in the region, and how they are being defined and reshaped.

      Yasmine Zarhloule

  • protesters carrying anti-AI banners
    Commentary
    Emissary
    Speed Isn’t Working as an AI Strategy. The U.S. Has a Better Option.

    It would provide a golden opportunity to reconsider what success looks like.

      • Michael Mazarr

      Michael Mazarr

  • Commentary
    Carnegie Politika
    Putin’s Post-Election Reshuffle Advances Russian State Erosion

    The pressures of war are gradually warping Russia’s system of governance, making it more vulnerable to a future crisis.

      Tatiana Stanovaya

  • Palestinian President Mahmoud Abbas meets Saudi Arabian Crown Prince Mohammed Bin Salman in Riyadh, Saudi Arabia on April 29, 2024. (Photo by PALESTINIAN PRESIDENCY/Anadolu via Getty Images)
    Paper
    Time for Saudi Clarity on Normalization with Israel

    The U.S. midterm elections signal the opening of a narrow window for bold Saudi diplomacy on Palestine.

      • Andrew Leber
      • Zaha Hassan

      Andrew Leber, Zaha Hassan

Get more news and analysis from
Carnegie Endowment for International Peace
Carnegie global logo, stacked
1779 Massachusetts Avenue NWWashington, DC, 20036-2103Phone: 202 483 7600
  • Research
  • Emissary
  • About
  • Experts
  • Donate
  • Programs
  • Events
  • Blogs
  • Podcasts
  • Contact
  • Annual Reports
  • Careers
  • Privacy
  • For Media
  • Government Resources
Get more news and analysis from
Carnegie Endowment for International Peace
© 2026 Carnegie Endowment for International Peace. All rights reserved.