On 21 October 2021, the Financial Action Task Force (“FATF”) issued its latest two public statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter financing of terrorism (AML/CFT) regimes:
“High-Risk Jurisdictions subject to a Call for Action – October 2021”; and “Jurisdictions under Increased Monitoring – October 2021”.
High-Risk Jurisdictions subject to a Call for Action
In this latest public statement the FATF continues to call on its members and urges 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 Iran and the Democratic People’s Republic of Korea’s (“DPRK”). These jurisdictions have been identified as high-risk given the significant strategic deficiencies identified in their regimes to counter money ML, TF and PF.
In its October statement the FATF indicated that in light of the COVID-19 pandemic, the review process for the list of High-Risk Jurisdictions subject to a Call for Action remains on pause given that these countries are already subject to the FATF’s call for countermeasures. Persons should refer to the FATF statement on these jurisdictions adopted in February 2020. While the statement may not necessarily reflect the most recent status in Iran and the DPRK’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect.
Jurisdictions under Increased Monitoring
There are currently 23 countries under and subject to increased monitoring by the FATF, otherwise referred to as a ‘grey list.’ These countries are actively working with the FATF to address the strategic deficiencies within their AML/CFT regimes. There is currently no requirement to apply enhanced due diligence measures to these jurisdictions, but the FATF encourages its members and all jurisdictions to take into account the information presented below in their risk analysis.
Updated statements for the countries that had their progress reviewed by the FATF since June 2021 are provided below. Since the June review, the FATF has also listed Jordan, Mali and Turkey.
Statements issued in February 2021 in relation to Burkina Faso, Haiti and South Sudan are also included below, but may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime.
Following the June review, Botswana and Mauritius were removed from the list as the FATF recognised the significant progress made by these jurisdictions in improving their AML/CFT regimes.
Both FATF Statements of 21 October 2021 are reproduced in full here.
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 statements.
This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source Link.