AML/ATF Ministerial Advisory 1/2019: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2019-02-22)

Summary

This Ministerial Advisory, issued by Bermuda's Minister of Legal Affairs, draws the regulated sector's attention to the FATF's 22 February 2019 public statements identifying jurisdictions with strategic AML/CFT deficiencies. It replaces all previous advisories on this subject and requires application of enhanced customer due diligence to business or customers connected to the listed higher risk jurisdictions, consistent with Regulation 11(1)(aa) and (ab) of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008.

• Highest risk (counter measures required): Democratic People's Republic of Korea (DPRK) and Iran, both also subject to separate international sanctions measures.
• High risk (enhanced due diligence required): The Bahamas, Botswana, Cambodia, Ethiopia, Ghana, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen; Syria, Tunisia and Yemen are also flagged with an asterisk for additional sanctions considerations.
• General expectation: All financial institutions and relevant persons must consider the FATF assessments in full and take appropriate risk mitigation actions, which may include enhanced due diligence in high risk situations.

The advisory applies to all persons and entities covered by Regulation 4 of the POCA Regulations, including AML/ATF regulated financial institutions, independent professionals, casino operators, FIA-registered dealers in high value goods, and real estate brokers and agents. It notes the FATF list is not exhaustive since many jurisdictions have not yet been reviewed.

Key obligations

• Apply enhanced customer due diligence, on a risk-sensitive basis, to business relationships and transactions connected to jurisdictions identified by FATF as higher risk, per Regulation 11(1)(aa) and (ab) of the POCA Regulations 2008.
• Apply counter measures and enhanced due diligence measures for business or transactions connected to DPRK and Iran, including additional measures required under the International Sanctions Regulations 2013 for sanctioned jurisdictions (DPRK, Iran, Syria, Tunisia, Yemen at time of publication).
• Read the annexed FATF statements in full to properly assess and determine the risks associated with the listed jurisdictions before taking action.
• Take appropriate actions to minimise risks associated with jurisdictions with strategic AML/CFT deficiencies (The Bahamas, Botswana, Cambodia, Ethiopia, Ghana, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Yemen), which may include enhanced due diligence.

Applies to

AML/ATF regulated financial institutions, independent professionals, casino operators, dealers in high value goods registered with the FIA, real estate brokers and real estate agents