AML-ATF Ministerial Advisory 1/2022: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2022-04-11)

Summary

This is a Ministerial Advisory issued by Bermuda's Minister of Legal Affairs and Constitutional Reform (published via the BMA's AML/ATF guidance page) drawing the regulated sector's attention to the FATF's March 2022 public statements on jurisdictions with strategic AML/CFT deficiencies. It replaces all previous advisories on this subject and sets out how firms should treat business relationships or transactions connected to the listed jurisdictions under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations).

• Call for Action list (black list): Democratic People's Republic of Korea and Iran (both also subject to sanctions measures) must be treated as high risk, with counter-measures and enhanced due diligence applied in accordance with the risks.
• Increased Monitoring list (grey list): Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Haiti, Jamaica, Jordan, Malta, Mali, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, United Arab Emirates and Yemen require appropriate risk-mitigation actions, which may include enhanced due diligence in high-risk situations.
• Sanctions overlay: Jurisdictions marked with an asterisk (DPRK, Iran, Myanmar, Nicaragua, South Sudan, Syria, Yemen) are also subject to sanctions measures requiring additional steps under the International Sanctions Regulations 2013.

The advisory applies to all persons and entities subject to Regulation 4 of the POCA Regulations and directs them to read the full annexed FATF statements to properly assess and act on the associated risks, noting that the lists are not exhaustive since many jurisdictions have not yet been reviewed by the FATF.

Key obligations

• Apply, on a risk-sensitive basis, enhanced customer due diligence to business relationships or transactions involving persons or countries identified by FATF as higher risk (POCA Regulation 11(1)(aa) and (ab))
• Treat DPRK and Iran as high risk and apply counter-measures and enhanced due diligence in accordance with the associated risks
• Take appropriate risk-mitigation actions, potentially including enhanced due diligence, for business connected to jurisdictions on the FATF increased monitoring (grey) list, including the Cayman Islands
• Apply additional measures under the International Sanctions Regulations 2013 for transactions or relationships connected to jurisdictions marked as also subject to sanctions (DPRK, Iran, Myanmar, Nicaragua, South Sudan, Syria, Yemen)
• Read the annexed FATF statements in full to make an appropriate risk determination rather than relying solely on the jurisdiction list

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