Markets

SEBI alerts bourses on Iran, N Korea money in markets

Our Bureau Mumbai | Updated on November 17, 2017

The SEBI has instructed the NSE, the BSE and their members to safeguard the capital markets from substantial money laundering and terrorist financing emanating from Iran and the Democratic People's Republic of Korea.

The market regulator has instructed exchanges and brokers to comply with the public statement issued by Financial Action Task Force (FATF), the apex international body looking into countries that have strategic deficiencies regarding anti-money laundering and combating the finance of terrorism. An update of its statement made in June said that FATF remained particularly concerned about Iran's failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system.

FATF urged Iran to address its AML/Combating the Finance of Terrorism (CFT) deficiencies by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements.

On DPR Korea, FATF said that it had neither committed to the AML/CFT international standards, nor responded to FATF's numerous requests for engagement on these issues. The lack of a comprehensive AML/CFT regime in DPR Korea posed a risk to the international financial system. FATF has urged DPR Korea to develop a viable AML/CFT regime in line with international standards.

If Iran fails to take concrete steps to improve its AML/CFT regime, the FATF will consider calling on its members and urging all jurisdictions to strengthen counter-measures in February.

Published on January 11, 2011

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