An international anti-money laundering body urged states on Thursday to warn financial institutions of risks associated with Iran but welcomed Tehran's pledge to boost safeguards and urged it to take action quickly.

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

"The FATF confirms its call to its members and urges all jurisdictions to advise their financial institutions to take the risk arising from the deficiencies in Iran's anti-money laundering/combating the financing of terrorism (AML/CFT) regime into account for enhanced due diligence," the FATF said.

A senior US Treasury official attended a FATF meeting with Iranian officials to discuss "terror financing" 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.

Iranian state television said on Wednesday that Iran's president had ordered the Economy Ministry to implement an anti-money laundering law, following international criticism that it was not doing enough.

"Since its October 2007 plenary meeting, the FATF has engaged with Iran and welcomes the commitment made by Iran to improve its AML/CFT regime," the FATF said in a statement.

"Iran is encouraged to continue its engagement with the FATF and the international community to address, on an urgent basis, its AML/CFT deficiencies," it added. - Reuters