The US Department of Treasury published the FinCEN note noting Iran “as a jurisdiction of primary money laundering concern”.
This designation comes as part of the implementation of a new Humanitarian Mechanism to Increase Transparency of Permissible Trade Supporting the Iranian People.
The mechanism aim to help the international community performing enhanced due diligence ignorer to ensure that humanitarian trade is not diverted into servicing other sectors of the economy or the Iranian government.
The mechanism enhanced requirements looks to undermine the asset flow to the regime as is noted that: “The Iranian regime oversees a vast network of corruption designed to evade sanctions, generate money for terrorists, and enrich Iran’s clerics,”
Some implications include the prohibition for US banks to open and/or maintain correspondent banking relationships with Iranian Financial Institutions.