VENTURE CAPITAL POST

An international financial watchdog said on Friday member states should take action to ward off risks emanating from Iran and North Korea, which it said had failed to tackle money-laundering and financing of terrorism.

The Financial Action Task Force, made up of 37 countries as well as the European Commission and Gulf Cooperation Council, said financial institutions should give special attention to business deals and transactions with Iran and North Korea.

The FATF also expressed deep concern about financing for Islamic State insurgents who have seized large swathes of Iraq and Syria. It said members needed to implement international standards to choke off the flow of funds to the group.

At a plenary meeting in Paris, the FATF further warned that Algeria, Ecuador, Indonesia and Myanmar were not doing enough to tackle money-laundering and terrorism-financing.

A further 18 developing states were singled out for failing to live up to international standards, but said they at least made high-level written commitments to improve their record.

The FATF said it would closely monitor these countries' progress towards international standards and told members to take their failings into account in their dealings with them.

Those countries are Afghanistan, Albania, Angola, Cambodia, Guyana, Iraq, Kuwait, Laos, Namibia, Nicaragua, Pakistan, Panama, Papua New Guinea, Sudan, Syria, Uganda, Yemen and Zimbabwe.