Advisory Warns Financial Institutions of Potentially Illicit Transactions
On October 11, 2018, FinCEN issued an advisory to help financial institutions identify potentially illicit transactions related to the Islamic Republic of Iran (Iran). The advisory details known key players and their tactics in exploiting the US financial system. FinCEN is warning financial institutions in an effort to prevent financing related to nefarious activities, including the funding of terrorist organizations such as the Islamic Revolutionary Guard Corps and Hamas.
Specifically, FinCEN is warning against the use of personal accounts by Central Bank of Iran senior officials and the illicit use of virtual currency, shipping companies, and precious metals, to name a few. In addition to maintaining strong controls over ensuring compliance with sanctions around the regime, the agency warns against transactions originating from, or otherwise involving, jurisdictions with strong geographical or ethical ties to Iran. Robust, multi-tiered levels of screening should be used to review transactions originating in, or involving, any jurisdiction in close proximity to Iran.