AML-ATF Ministerial Advisory 2/2024: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2024-07-08)

Summary

This Ministerial Advisory, issued by Bermuda's Minister of Legal Affairs, draws the attention of the Bermuda regulated sector and relevant persons to the latest FATF public statements (28 June 2024) on jurisdictions with strategic AML/CFT deficiencies. It replaces all previous advisories on this subject and reminds relevant persons of their existing obligation under the POCA Regulations 2008 to apply enhanced customer due diligence to higher-risk countries.

• Legal basis: Regulation 11(1)(aa) and 11(1)(ab) of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 require relevant persons to apply enhanced due diligence, on a risk-sensitive basis, to customers or transactions linked to countries identified by FATF or CFATF as higher risk.
• Countermeasures/EDD tier: DPRK, Iran and Myanmar are identified as high-risk jurisdictions subject to a call for countermeasures and enhanced due diligence (Annex A).
• Increased monitoring tier: Bulgaria, Burkina Faso, Cameroon, Croatia, Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen are listed under increased monitoring (Annex B), warranting appropriate risk mitigation actions, potentially including enhanced due diligence.
• Sanctions overlap: Jurisdictions marked with an asterisk (DPRK, Iran, Myanmar, DRC, Haiti, Mali, South Sudan, Syria, Venezuela, Yemen) are also subject to sanctions measures requiring additional action under the International Sanctions Regulations 2013.
• Delisted jurisdictions: Jamaica and Türkiye are noted as no longer subject to FATF increased monitoring, having completed their action plans.

The Advisory applies to all entities and persons covered by Regulation 4 of the POCA Regulations and instructs them to review the annexed FATF statements in full and factor the identified risks into their AML/CFT systems and controls, noting that the lists are not exhaustive since many jurisdictions have not yet been reviewed by FATF.

Key obligations

• Relevant persons must apply enhanced customer due diligence, on a risk-sensitive basis, to business relationships or transactions involving persons or countries identified by FATF/CFATF as higher risk (per Regulation 11(1)(aa) and (ab) of the POCA Regulations 2008).
• Relevant persons must consider applying countermeasures and enhanced due diligence to DPRK, Iran and Myanmar as directed by the Minister of Legal Affairs.
• Relevant persons must take appropriate risk-mitigating actions, which may include enhanced due diligence, for jurisdictions listed under increased monitoring (the grey list).
• Firms must read the annexed FATF statements in full to properly assess and determine the risks relating to the listed jurisdictions.
• Firms dealing with asterisked (sanctioned) jurisdictions must take additional measures required under the International Sanctions Regulations 2013.

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