The Financial Action Task Force (“FATF”) is the global standard-setting body that promotes measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF regularly issues public statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter financing of terrorism (AML/CFT) regimes. On 25 June 2021, FATF issued two public statements:
“High-Risk Jurisdictions subject to a Call for Action – June 2021”; and “Jurisdictions under Increased Monitoring – June 2021”.
The key matters within these statements are as follows:
High-Risk Jurisdictions subject to a Call for Action
The FATF, in this public statement, re-iterated that high-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. It called on its members and urged all jurisdictions to apply enhanced due diligence, and, in the most serious cases, other countermeasures, to protect the international financial system from money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risk emanating from these high-risk jurisdictions. The FATF also reminded persons that in light of the COVID-19 pandemic, the review process for the list of High-Risk Jurisdictions subject to a Call for Action had been paused given that they are already subject to the FATF’s call for countermeasures. However, persons should refer to the FATF statement on these jurisdictions adopted in February 2020 which underscored the FATF’s continued concern for the Democratic People’s Republic of Korea’s (“DPRK”) failure to address the significant deficiencies in its AML/CFT regime. The public statement also noted Iran’s failure to address its strategic AML/CFT deficiencies. While the statement may not necessarily reflect the most recent status in Iran and the Democratic People’s Republic of Korea’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect.
The British Virgin Islands Financial Services Commission (“FSC”) wishes to advise the general public, including all persons who are required to comply with the requirements of the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008, to note the concerns expressed by the FATF with respect to the named jurisdictions and consider the associated money laundering and/or terrorist financing risks. The FSC encourages all to apply appropriate or enhanced customer due diligence measures when dealing with customers or handling transactions connected with any of the jurisdictions that have been identified by the FATF’s public statement.
Jurisdictions Under Increased Monitoring
This public statement presents a brief on 22 countries that are under and subject to increased monitoring by the FATF, otherwise referred to as a ‘grey list.’ These countries have committed to work within FATF timeframes, to fully attend to any strategic deficiencies within their AML/CFT regimes. The FATF does not call for the application of enhanced due diligence measures to be applied to these jurisdictions but encourages its members and all jurisdictions to take into account the information presented below in their risk analysis.
In October 2020, the FATF recommenced work paused due to the COVID-19 pandemic. The following countries had their progress reviewed by the FATF since February 2021: Albania, Barbados, Botswana, Cambodia, Cayman Islands, Ghana, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Uganda, and Zimbabwe. Updated statements are provided below. Following review, the FATF now also identifies Haiti, Malta, the Philippines, and South Sudan. Burkina Faso and Senegal chose to defer reporting due to the pandemic. The statements issued in February 2021 for these jurisdictions are included below, but they may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime.
Countries on this list are:
Additionally, Ghana has been removed from the list as the FATF recognised the significant progress made by the jurisdiction in improving its AML/CFT regime.
Both FATF Statements of 25 June 2021 are reproduced in full here.
This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source Link.