Iran, Islamic Republic of Country Summary

FATF Status

Iran is subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.

Compliance with FATF Recommendations

Iran has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.

Iran faces significant challenges related to crime and corruption, with widespread human trafficking, a pervasive illicit drug market, and rampant financial crimes. The governance system struggles to effectively combat organized crime, as anti-corruption efforts are often politicized, and the fragmented judicial system lacks due process, leading to a climate of impunity and human rights violations.

Iran's economy is a mixed system dominated by state ownership and central planning, particularly in the oil sector, which significantly contributes to its GDP. As of 2024, Iran ranks as the 19th largest economy globally by purchasing power parity, with key sectors including services, industry, and agriculture, although it faces challenges such as high inflation and international sanctions. The investment climate is hindered by state control and regulatory complexities, yet the government is attempting reforms to attract foreign capital, especially in tourism and technology, while also promoting diversification into sectors like biotechnology and pharmaceuticals amidst ongoing geopolitical tensions.