The purpose of this notice, issued pursuant to section 83 of the AMLA, is to inform the RIs on the statements issued by the FATF on 25 February 2021 regarding the High-Risk Jurisdictions subject to a Call for Action (Appendix I) and Jurisdictions under Increased Monitoring (Appendix II).
The FATF’s call for action to apply effective countermeasures and targeted financial sanctions (TFS) in accordance with the applicable United Nations Security Council Resolutions against the Democratic People’s Republic of Korea (DPRK) remains in effect.
In accordance with the AML/CFT and TFS Policy Documents, please be advised that RIs are required to conduct enhanced customer due diligence for business relationships and transactions with any person from the DPRK including
those acting on their behalf. In addition to enhanced CDD requirement, the RIs are also required to apply any relevant countermeasures proportionate to the risk, including limiting business relationship and financial transactions with DPRK, including DPRK companies, financial institutions, and those acting on their behalf and terminating correspondent relationships with DPRK banks, where necessary.
In relation to Iran, the FATF’s call for action to apply enhanced due diligence and effective countermeasures, in line with paragraph 17 of the AML/CFT and TFS Policy Documents also remains in effect.
RIs should also take note of other Jurisdictions under Increased Monitoring due to strategic AML/CFT deficiencies in their regime for which they have developed an action plan with the FATF. RIs are expected to take into account the
situation of each jurisdiction in its risk analysis on a case-by-case basis and the FATF does not call for the application of enhanced due diligence to be applied to these jurisdictions. In this regard, please be advised that Senegal, Burkina Faso, Morocco and the Cayman Islands have been included in the FATF’s increased monitoring process.
In dealing with the identified jurisdictions in the paragraphs above, RIs shall manage risk in line with the risk-based approach rather than de-risking or wholesale cutting loose of entire classes of customer, without taking into account,
seriously and comprehensively, the level of risk or risk mitigation measures for individual customers within a particular sector.
Further information on the abovementioned statements and other monitored jurisdictions is available at the FATF’s website at http://www.fatf-gafi.org.
Please be guided accordingly.
High-Risk Jurisdictions subject to a Call for Action – February 2021
High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and, in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country. This list is oen externally referred to as the “black list”. Since February 2020, in light of the COVID-19 pandemic, the FATF has paused the review process for countries in the list of High-Risk Jurisdictions subject to a Call for Action, given that they are already subject to the FATF’s call for countermeasures. Therefore, please refer to the statement on these jurisdictions adopted in February 2020. While the statement may not necessarily reflect the most recent status of Iran and the Democratic People’s Republic of Korea’s AML/CFT regimes, the FATF’s call for action on these high-risk jurisdictions remains in effect.
Jurisdicons under Increased Monitoring – February 2021
Jurisdicons under increased monitoring are acvely working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferaon financing. When the FATF places a jurisdicon under increased monitoring, it means the country has commied to resolve swily the idenfied strategic deficiencies within agreed meframes and is subject to increased monitoring. This list is oen externally referred to as the “grey list”.
The FATF and FATF-style regional bodies (FSRBs) connue to work with the jurisdicons below as they report on the progress made in addressing their strategic deficiencies. The FATF calls on these jurisdicons to complete their acon plans expediously and within the agreed meframes. The FATF welcomes their commitment and will closely monitor their progress. The FATF does not call for the applicaon of enhanced due diligence measures to be applied to these jurisdicons, but encourages its members to take into account the informaon presented below in their risk analysis.
The FATF idenfies addional jurisdicons, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferaon financing. A number of jurisdicons have not yet been reviewed by the FATF and FSRBs.
In October 2020, the FATF decided to recommence its work to idenfy new countries with strategic AML/CFT deficiencies and to priorise the review of listed countries with expired or expiring deadlines. The other listed jurisdicons were given the opon to report. The following countries had their progress reviewed by the FATF since October: Albania, Botswana, Cambodia, Ghana, Maurius, Myanmar, Nicaragua, Pakistan, Panama, Uganda and Zimbabwe. For these countries, updated statements are provided below. Barbados and Jamaica chose to defer reporng due to the pandemic; thus, the statements issued in February 2020 for these jurisdicons are included below, but they may not necessarily reflect the most recent status of the jurisdicon’s AML/CFT regime. Following review, the FATF now also idenfies Burkina Faso, the Cayman Islands, Morocco, and Senegal.
The FATF welcomes the progress made by these countries in combang money laundering and terrorist financing, despite the challenges posed by COVID-19.
Jurisdicons with strategic deficiencies
- Burkina Faso
- Cayman Islands
Credited by BNM
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