SYDNEY (BNO NEWS) -- Australian Foreign Affairs Minister Kevin Rudd and Justice Minister Brendan O'Connor on Tuesday began consultation on measures to stop money laundering and terrorism financing through Iran.

"Australia and the international community are aware that Iran is a source of money laundering and terrorism financing," O'Connor said. "Greater measures are necessary to prevent criminals taking advantage of weaknesses in Iran's government and banking systems to launder the proceeds of crime or finance terrorist attacks."

The draft regulations in Australia would prohibit transactions with parties in Iran of $20,000 or more. Businesses that want to continue dealing with parties in Iran would need to seek an exemption from the Department of Foreign Affairs and Trade for transactions over $20,000.

The prohibition focuses on transactions that have a high money laundering or terrorism financing risk, such as international money transfers.

The draft regulations complement new requirements for entities that report to AUSTRAC, Australia's anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit. The new anti money laundering and counter-terrorism financing rules require greater vigilance for all transactions involving parties in Iran, including closer scrutiny of transactions and increased due diligence checks by businesses upon their customers.

"This action demonstrates Australia's willingness to take action to stop the ongoing money laundering and terrorism financing risk that emanates from Iran," O'Connor said.

Rudd said the measures help protect Australian interests and the interests of its allies across the world. "Australia is committed to strong international action against threats to peace and security," Rudd said. "These measures complement Australia's sanctions regime relating to Iran's nuclear program."

The Foreign Minister said it is important to take action to reduce the risk of terrorism and international crime, and noted that the inter-governmental body the Financial Action Taskforce (FATF) has called for countries to apply measures against Iran to ensure compliance with international standards.

(Copyright 2011 by BNO News B.V. All rights reserved. Info: sales@bnonews.com.)