High-risk and non-cooperative jurisdictions
Improving Global AML/CFT Compliance: on-going process - 27 June 2014
Paris, 27 June 2014 - As part
of its on-going review of compliance with the AML/CFT standards, the FATF has to
date identified the following jurisdictions which have strategic AML/CFT
deficiencies for which they have developed an action plan with the FATF. While
the situations differ among each jurisdiction, each jurisdiction has provided a
written high-level political commitment to address the identified deficiencies.
The FATF welcomes these commitments.
A large number of jurisdictions have
not yet been reviewed by the FATF. The FATF continues to identify additional
jurisdictions, on an on-going basis, that pose a risk to the international
financial system.
The FATF and the FATF-style regional
bodies (FSRBs) will continue to work with the jurisdictions noted below and to
report on the progress made in addressing the identified deficiencies. The FATF
calls on these jurisdictions to complete the implementation of action plans
expeditiously and within the proposed timeframes. The FATF will closely monitor
the implementation of these action plans and encourages its members to consider
the information presented below.
|
Afghanistan Albania Angola Argentina Cambodia Cuba Ethiopia Iraq |
Kuwait Lao PDR Namibia Nicaragua Pakistan Panama Papua New Guinea |
Sudan Syria Tajikistan Turkey Uganda Yemen Zimbabwe |
...
Argentina
Since June 2011, when Argentina made a high-level political commitment to
work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies,
Argentina has made significant progress to improve its AML/CFT regime. Argentina
has substantially addressed its action plan, including by: adequately
criminalising money laundering and terrorist financing; establishing procedures
to identify and freeze terrorist assets; enhancing procedures for the
confiscation of funds related to money laundering; ensuring a fully operational
and effectively functioning financial intelligence unit and enhancing suspicious
transaction reporting requirements; establishing customer due diligence
requirements; and enhancing financial sector supervision. The FATF will conduct
an on-site visit to confirm that the process of implementing the required
reforms and actions is underway to address deficiencies previously identified by
the FATF.
...
Kuwait
In June 2012, Kuwait made a high-level political commitment to work with the
FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since February,
Kuwait has taken steps towards improving its AML/CFT regime, including by
issuing a Ministerial Resolution on freezing terrorist assets. However, the FATF
has determined that certain strategic AML/CFT deficiencies remain. Kuwait should
continue to work on implementing its action plan to address these deficiencies,
including by: (1) ensuring it has adequate procedures to identify and freeze
terrorist assets; and (2) ensuring a fully operational and effectively
functioning financial intelligence unit. The FATF encourages Kuwait to address
its remaining deficiencies and continue the process of implementing its action
plan.
...
Nicaragua
In June 2011, Nicaragua made a high-level political commitment to work with
the FATF to address its strategic AML/CFT deficiencies. Since February,
Nicaragua has taken steps towards improving its AML/CFT regime, including by
establishing internal mechanisms for STR obligations and creating an AML/CFT
supervisory programme for all financial sectors and issuing Decree 17-2014 aimed
at establishing a framework for identifying and freezing terrorist assets.
However, the FATF has determined that certain strategic AML/CFT deficiencies
remain. Nicaragua should continue to work on implementing its action plan to
address these deficiencies, including by ensuring adequate procedures for
identifying and freezing terrorist assets. The FATF encourages Nicaragua to
address its remaining deficiencies and continue the process of implementing its
action plan.
...
Panama
In June 2014, Panama made a high-level political commitment to work with the
FATF and GAFISUD to address its strategic AML/CFT deficiencies. Panama will work
on implementing its action plan to address these deficiencies, including by: (1)
adequately criminalising money laundering and terrorist financing; (2)
establishing and implementing an adequate legal framework for freezing terrorist
assets; (3) establishing effective measures for customer due diligence in order
to enhance transparency; (4) establishing a fully operational and effectively
functioning financial intelligence unit; (5) establishing suspicious transaction
reporting requirements for all financial institutions and DNFBPs; and (6)
ensuring effective mechanisms for international co-operation. The FATF
encourages Panama to address its AML/CFT deficiencies by implementing its action
plan.
Full text in http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-june-2014.html
Advisory
| FIN-2014-A006 | |
| Issued: | August 5, 2014 |
| Subject: | Advisory on the FATF-Identified Jurisdictions with AML/CFT Deficiencies |
On June 27, 2014, the Financial Action Task Force (FATF) updated its list of jurisdictions with strategic AML/CFT deficiencies. These changes may affect U.S. financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions.
As part of the FATF’s listing and monitoring process to ensure compliance with the international Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) standards, the FATF identified certain jurisdictions as having strategic deficiencies in their AML/CFT regimes.1 The FATF updated its lists of jurisdictions that appear in two documents:2 (I) jurisdictions that are subject to the FATF’s call for countermeasures or are subject to Enhanced Due Diligence (EDD) due to their AML/CFT deficiencies (referred to by the FATF as the ‘FATF Public Statement’) and (II) jurisdictions identified by the FATF to have AML/CFT deficiencies (referred to by the FATF as 'Improving Global AML/CFT Compliance:On-going Process’). Financial institutions should consider these changes when reviewing their obligations and risk-based approaches with respect to the jurisdictions noted below.
...
II. Jurisdictions identified by the FATF to have AML/CFT deficiencies
The FATF has identified the following jurisdictions as having deficiencies in their AML/CFT regimes, for which they have developed an action plan with the FATF. Consequently, these jurisdictions are included in the following list of jurisdictions with AML/CFT deficiencies (as described in the FATF’s Improving Global AML/CFT Compliance: On-going Process document).
...
Panama has also been identified on this list because of strategic deficiencies in its AML/ CFT regime. This country has made a high-level political commitment to work with the FATF and its FATF-Style Regional Body to implement an action plan to address its strategic AML/CFT deficiencies.
...
FinCEN Guidance regarding jurisdictions listed in Section II of this Advisory
U.S. financial institutions should consider the risks associated with the AML/CFT deficiencies of the countries identified under this section (Afghanistan, Albania, Angola, Argentina, Cambodia, Cuba, Ethiopia, Iraq, Kuwait, Lao PDR, Namibia, Nicaragua, Pakistan, Panama, Papua New Guinea, Sudan, Syria,11 Tajikistan, Turkey, Uganda, Yemen, and Zimbabwe). With respect to these jurisdictions, U.S. financial institutions are reminded of their obligations to comply with the general due diligence obligations under 31 CFR § 1010.610(a). As required under 31 CFR § 1010.610(a), covered financial institutions should ensure that their due diligence programs, which address correspondent accounts maintained for foreign financial institutions, include appropriate, specific, risk-based, and, where necessary, enhanced policies, procedures, and controls that are reasonably designed to detect and report known or suspected money laundering activity conducted through or involving any correspondent account established, maintained, administered, or managed in the United States.
...
Additional questions or comments regarding the contents of this Advisory should be addressed to the FinCEN Resource Center at (800) 949-2732. Financial institutions wanting to report suspicious transactions that may relate to terrorist activity should call the Financial Institutions Toll-Free Hotline at (866) 556-3974 (7 days a week, 24 hours a day). The purpose of the hotline is to expedite the delivery of this information to law enforcement. Financial institutions should immediately report any imminent threat to local-area law enforcement officials.
1 The FATF (www.fatf-gafi.org) is a 36-member intergovernmental policy making body that establishes international standards to combat money laundering and counter the financing of terrorism and proliferation of weapons of mass destruction. The United States is a member of the FATF.
2 The FATF public identification of countries with strategic AML/CFT deficiencies is in response to the G-20 leaders’ call for the FATF to reinvigorate its process for assessing countries’ compliance with international AML/CFT standards. The G-20 leaders have consistently called for the FATF to issue regular updates on jurisdictions with strategic deficiencies. Specifically within the FATF, the International Cooperation Review Group (ICRG) is tasked with leading the process to identify and monitor countries with AML/CFT deficiencies. For more information on the ICRG procedures, please visit the FATF’s website www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/moreabouttheinternationalco-operationreviewgroupicrg.html.Full text in http://www.fincen.gov/statutes_regs/guidance/html/FIN-2014-A006.html
