AML/ATF Ministerial Advisory 1/2023: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2023-04-24)

Summary

This is a Ministerial Advisory issued by Bermuda's Minister of Legal Affairs and Constitutional Reform (published via the Bermuda Monetary Authority's AML/ATF guidance channel) drawing the regulated sector's attention to the FATF's February 2023 public statements on jurisdictions with AML/CFT deficiencies. It reminds relevant persons of their existing obligation under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 to apply enhanced due diligence to higher-risk countries, and lists which jurisdictions currently fall into which risk category.

• Call for Action list (black list): DPRK, Iran and Myanmar: relevant persons must treat these as high risk and apply counter-measures and enhanced due diligence commensurate with the risk.
• Increased Monitoring list (grey list): Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of the Congo, Gibraltar, Haiti, Jamaica, Jordan, Mali, Mozambique, Nigeria, Panama, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkiye, Uganda, United Arab Emirates and Yemen: relevant persons should take appropriate risk-mitigating action, which may include enhanced due diligence in high-risk situations.
• Sanctions overlay: Jurisdictions marked with an asterisk (DPRK, Iran, Myanmar, DR Congo, Haiti, Mali, South Sudan, Syria, Yemen) are also subject to sanctions measures requiring additional action under the International Sanctions Regulations 2013.
• Superseded advisory: This Advisory replaces all previous Ministerial Advisories issued on this subject.

The Advisory does not itself create new legal rules but operationalises existing Regulation 11(1)(aa) and (ab) obligations by identifying which countries currently trigger enhanced due diligence duties. It stresses that the FATF lists are not exhaustive and that firms must still assess other jurisdictions that may present higher money laundering or terrorist financing risk.

Key obligations

• Relevant persons must apply enhanced customer due diligence, on a risk-sensitive basis, to business relationships and transactions involving DPRK, Iran and Myanmar, and in the most serious cases apply counter-measures.
• Relevant persons should take appropriate risk-mitigating actions, potentially including enhanced due diligence, for business relationships and transactions involving jurisdictions on the FATF increased monitoring (grey) list.
• Firms dealing with sanctioned jurisdictions (marked with an asterisk) must take additional measures required under the International Sanctions Regulations 2013.
• Relevant persons must read the annexed FATF statements in full to properly determine the risk associated with each listed jurisdiction, and must also consider risks from jurisdictions not yet reviewed by FATF.

Applies to

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