• Research
  • Politika
  • About
Carnegie Russia Eurasia center logoCarnegie lettermark logo
  • 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

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 Russia Eurasia Center

  • Commentary
    Carnegie Politika
    Turkmenistan’s Ruling Duo Is Having a Family Feud. Will Their Regime Survive It?

    Ex-president Gurbanguly Berdimuhamedov remains interested in politics, but his son Serdar, Turkmenistan’s current president, is becoming increasingly independent and willing to break with his father’s legacy. If their covert rivalry goes too far, both risk losing power.

      Galiya Ibragimova

  • Commentary
    Carnegie Politika
    Russian Indoctrination in Occupied Ukrainian Schools Is a Sham

    Despite a new textbook, an influx of Russian teachers and managers, and an end to the teaching of Ukrainian, the Kremlin is unlikely to have “reprogrammed” locals.

      Konstantin Skorkin

  • Commentary
    Carnegie Politika
    International Demand for Russia’s Arctic Shipping Route Is Unlikely to Last

    Cargo traffic through Russia’s Northern Sea Route has increased because of the disruption caused by the conflict in the Middle East, the Ukraine war, and U.S.-China tensions.

      • Mikhail Korostikov

      Mikhail Korostikov

  • Commentary
    Carnegie Politika
    How the Kremlin Achieved Its Latest Implausible Election Results

    Sergei Kiriyenko used Russia’s parliamentary vote to further hone his strategy of corporate mobilization that is designed to maximize votes for United Russia.  

      Andrey Pertsev

  • Commentary
    Carnegie Politika
    Belarus Wants More From the West Than a ‘Massive Deal’ on Potash

    Trump has promised Belarus a massive potash deal. But Minsk is seeking something greater: restored Western transit and greater room for maneuver from Russia.

      Balázs Jarábik

Get more news and analysis from
Carnegie Russia Eurasia Center
Carnegie Russia Eurasia logo, white
  • Research
  • Politika
  • About
  • Experts
  • Events
  • Contact
  • Privacy
  • For Media
Get more news and analysis from
Carnegie Russia Eurasia Center
© 2026 Carnegie Endowment for International Peace. All rights reserved.