A global dirty money watchdog said on Friday said that it had given Iran a final deadline of February 2020 to comply with international norms after which it would request all its members to apply counter-measures. Earlier, the FATF retained Pakistan on the grey list after Islamabad could implement the 27-point Action Plan.

“If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, then the FATF will fully lift the suspension of counter-measures and call on its members and urge all jurisdictions to apply effective counter-measures, in line with recommendation 19,” it said in a statement.

That meant countries should apply countermeasures when called upon to do so by the FATF and should also be able to do so independently of any call by the FATF, it added.

Earlier, the Financial Action Task Force decided to retain Pakistan on the grey list after Islamabad could not fully implement the 27-point Action Plan.

The FATF acknowledged Pakistan’s efforts only on five agreed action points but did not accept Pakistan’s position on another five points related to terrorism financing and risks posed by various banned organisations.

The FATF’s decision to retain Pakistan on a list of countries whose terrorism financing and money laundering laws and regulations are found to be deficient is in line with the government’s expectations.

“The FATF strongly urges Pakistan to swiftly complete its full action plan by February 2020,” it said in a statement. “Otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next Plenary, the FATF will take action.”

In February last year, the FATF had decided to place Islamabad on the grey list with effect from June 2018. Pakistan had been given a 27-point action plan that required it to completely stifle terror financing and money laundering, dismantle terrorists’ sanctuaries and make the banking and non-banking financial regulations more stringent.