AML-ATF Ministerial Advisory 2/2021: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2021-07-14)

Summary

This Ministerial Advisory from Bermuda's Minister of Legal Affairs and Constitutional Reform draws the regulated sector's attention to the FATF's 25 June 2021 public statements identifying jurisdictions with strategic AML/CFT deficiencies. It reissues and replaces prior advisories on this topic and instructs firms to factor these FATF findings into their enhanced due diligence obligations under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations).

• High-risk jurisdictions (Call for Action / black list): DPRK and Iran, both also subject to sanctions measures; firms must treat these as high risk and apply counter-measures and enhanced due diligence proportionate to the risk.
• Jurisdictions under increased monitoring (grey list): Albania, Barbados, Botswana, Burkina Faso, Cambodia, Cayman Islands, Haiti, Jamaica, Malta, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Syria, Uganda, Yemen and Zimbabwe; firms should take appropriate actions to minimise associated risks, which may include enhanced due diligence.
• Sanctions overlay: DPRK, Iran, Myanmar, Nicaragua, South Sudan, Syria, Yemen and Zimbabwe are also flagged as subject to sanctions measures under the International Sanctions Regulations 2013, requiring additional measures beyond AML/CFT due diligence.
• Delisted jurisdiction: Ghana is confirmed as no longer subject to FATF increased monitoring.

The advisory applies to all entities and persons covered by Regulation 4 of the POCA Regulations and requires them to read the full FATF statements (annexed) to properly assess risk, rather than relying solely on the jurisdiction lists, since many countries remain unreviewed by FATF.

Key obligations

• Apply enhanced customer due diligence and, where warranted, counter-measures to business relationships and transactions connected to DPRK and Iran, in line with Regulation 11(1)(aa) and (ab) of the POCA Regulations.
• Take appropriate risk-mitigation actions, which may include enhanced due diligence, for customers or transactions connected to the listed jurisdictions under increased monitoring (grey list).
• Read the annexed FATF statements in full to properly determine the risk posed by each listed jurisdiction rather than relying on the summary list alone.
• Apply additional measures required under the International Sanctions Regulations 2013 for jurisdictions marked as subject to sanctions (DPRK, Iran, Myanmar, Nicaragua, South Sudan, Syria, Yemen, Zimbabwe).
• Consider risks from jurisdictions not yet reviewed by FATF, since the published lists are not exhaustive.

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