Iran's president has ordered the Economy Ministry to implement an anti-money laundering law, state TV said.

The move follows international criticism of Tehran for not doing enough to fight money laundering.

The Financial Action Task Force (FATF), a 34-nation group established by the Group of Seven indutrial nations in 1989, has previously voiced concern that Iran lacked a comprehensive regime to tackle money laundering and combat the financing of terrorism.

The United States, leading efforts to isolate Iran over its nuclear programme, has been urging governments and firms to cut business and other ties with Tehran which Washington accuses of financing terrorist groups. Iran denies the charge.

'The president of the Islamic Republic of Iran (Mahmoud Ahmadinejad) ordered the Economy Ministry to implement the money laundering law. This law has been passed by parliament and approved by the Guardian Council,' state TV reported.

Based on this law, 'the crime of money laundering means obtaining, possessing, keeping and using the benefits resulting from illegal activities with the knowledge that, directly or indirectly, (funds) came from committing this crime,' it said.

A senior US Treasury official held a rare meeting with Iranian officials to discuss 'terror financing' as part of the FATF gathering in Paris in January.

Iran and the United States have not had diplomatic ties for almost three decades. Iran later played down the significance of the meeting at the multilateral talks, saying no direct discussions were held.

Stuart Levey, the US Treasury's top sanctions official, will visit Qatar, Bahrain and the UAE this week to build support for a US campaign to increase pressure on Iran and combat terrorist financing, a US official said.

The US Treasury has frozen US assets and prohibited US transactions with several Iranian state banks and other companies it accuses of aiding Iran's quest for nuclear weapons and of providing financial support to terrorist groups.

Among firms blacklisted are four of Iran's main state banks: Bank Melli, Bank Mellat, Bank Sepah and Bank Saderat.

Iran, the world's fourth largest oil producer, insists its nuclear programme is peaceful and is aimed at mastering technology to produce electricity. - Reuters