The US has heralded a move by international regulators to censure Iran for inadequate money laundering and terrorist financing controls – a step Washington says means that more foreign banks will pull out from or scale down business with Tehran.

The statement this month by the Financial Action Task Force, a 34-country anti-money laundering group, said that Iran’s deficiencies in the two areas represented “a significant vulnerability within the international financial system”. It called for action “on an urgent basis” by Iran and “enhanced due diligence” from financial institutions.