Iran has sharply criticized the United States policies on terrorism, saying Washington supports Mujahedin Khalq Organization (MKO).

An Iranian envoy to the UN Security Council said while both Washington and the EU have banned MKO as a terrorist organization, its members 'continue to enjoy support and receive safe haven' in the US and some EU member states, Reuters reported.

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MKO, which has also been present in Iraq, assisted Saddam Hussein in the massacre of thousands of Iraqis.

The group is also responsible for several acts of terror in Iran including the 1994 bombing of Imam Reza's Shrine in Mashhad.

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