Iran given February deadline

A global financial watchdog on Friday warned Iran to clamp down on terrorism financing by February or face a deeper squeeze on its sanctions-hit economy.

The Islamic republic, already hurt by a resumption of US sanctions over its past nuclear programme, this month approved one bill to help meet demands imposed by the international Financial Action Task Force (FATF).

FATF, following a meeting at its Paris headquarters this week, welcomed the legislation and extended a suspension of counter-measures that has allowed Iran to escape further isolation from international finance.

But nine of the 10 "action plan" items needed to remove Iran from an FATF blacklist have yet to be adopted by Tehran, according to Marshall Billingslea, the US assistant treasury secretary for terrorist financing.

"In our plenary, here in Paris, we expressed our disappointment that the majority of the action plan remains outstanding," said Billingslea, who currently chairs the FATF, told a news conference.

"We expect that they will have adopted all these measures by February," he said.

Billingslea said if measures were not adopted by February next year, the FATF will take further steps to protect against the risks from Iran's lack of action.

For Iran, access to finance has become particularly pressing since the United States walked out of a 2015 nuclear deal earlier this year and began reimposing sanctions.

Iran's foreign ministry in a statement reacted favourably to the FATF decision, saying it considered the extension of the suspension of countermeasures "another victory" for Tehran's diplomacy.

However the ministry urged the financial watchdog to "resist political pressures" in its dealings with Iran.