Legal Mechanisms for the Prevention and Combating of Money Laundering in the Iranian Banking System (with Emphasis on the Requirements of Global Monetary and Financial Organizations)

Abstract

Money laundering, as a serious challenge within the Iranian banking system, requires effective legal mechanisms for the identification, prevention, and combating of illegal financial activities. This study examines the legal and regulatory requirements that, based on the Anti-Money Laundering Act of 2016 and its amendments, obligate banks to identify customers, monitor transactions, and report suspicious activities. The analysis reveals that weaknesses in the legal capacity of banks may lead to failures in implementing guidelines and an increase in civil and criminal liability for managers. Furthermore, alignment with international standards, particularly the recommendations of the Financial Action Task Force (FATF), is of great importance, and compliance with these requirements can reduce the risk of international punitive measures. This study investigates supervisory, educational, and technological processes within the Iranian banking system and emphasizes that strengthening the legal and educational capacity of banks, developing intelligent systems for transaction analysis, and establishing effective coordination with judicial and security institutions are among the most important elements of these mechanisms. Ultimately, success in preventing and combating money laundering requires the simultaneous implementation of domestic laws, international obligations, and the development of modern technologies. This process is not only a legal obligation but also a practical and strategic necessity for enhancing the transparency and credibility of the country’s banking system.