Executive Methods Applied under Anti-Money Laundering Laws and Regulations in the Iranian Legal System

Abstract

Money laundering, as a complex process, involves the processing of proceeds derived from criminal activities for the purpose of concealing or disguising the illicit origin of funds and comprises three stages: placement, layering, and integration. The present dissertation constitutes fundamental and theoretical research and employs a descriptive-analytical method based on available books, scholarly articles, authoritative legal sources, laws and regulations concerning money laundering, as well as the anti-money laundering regulations applicable to executive bodies, institutions, and persons involved in matters relating to money laundering. The purpose of this study is to examine and elucidate Iran’s executive policy toward combating the crime of money laundering. Iran has acceded to several conventions concerning the combating of money laundering and corruption, and a number of effective measures have been undertaken in this regard. These include the adoption of the 2019 Anti-Money Laundering Executive Regulation, through which significant executive measures have been introduced, particularly measures that are substantially aligned with the recommendations of the Financial Action Task Force (FATF). Such measures include the accurate and comprehensive identification of clients; the establishment of the Financial Intelligence Unit referred to in Article 7 of the Anti-Money Laundering Act; the establishment of an anti-money laundering unit within each relevant executive body; the imposition of obligations on covered persons to ensure the effective combating of money laundering; and particular attention to designated non-financial businesses and professions, as well as the obligations imposed on covered persons and operators of non-financial businesses and professions in combating money laundering. Nevertheless, despite these developments, Iran’s executive criminal policy still lacks sufficient effectiveness and efficiency in ensuring an effective response to money laundering.