AML/ATF Ministerial Advisory 3/2019: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2019-12-19)

Summary

This advisory from Bermuda's Minister of Legal Affairs draws the attention of the AML/ATF regulated sector and relevant persons to the latest FATF and CFATF public statements on jurisdictions with strategic AML/CFT deficiencies, issued under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008. It replaces all previous advisories on this subject and sets out which countries should be treated as higher risk and what level of due diligence response is expected for each.

• Apply counter-measures and enhanced due diligence: Democratic People's Republic of Korea (DPRK) and Iran, both also subject to international sanctions measures requiring additional steps under the International Sanctions Regulations 2013.
• Apply enhanced due diligence measures: The Bahamas, Botswana, Cambodia, Ghana, Iceland, Mongolia, Pakistan, Panama, Syria, Trinidad and Tobago, Yemen and Zimbabwe (Syria, Yemen and Zimbabwe also subject to sanctions measures).
• Take appropriate risk mitigation action: Countries in FATF's ongoing compliance process, which may warrant enhanced due diligence in high risk situations.
• Sint Maarten: Per the CFATF statement of 27 November 2019, take appropriate action to minimise associated risks, which may include enhanced due diligence in high risk situations.

The Advisory applies to all entities and persons covered by Regulation 4 of the POCA Regulations, and states that these sectors shall comply with the advice given. It also notes that the listed jurisdictions are not exhaustive, since many countries have not yet been assessed by FATF.

Key obligations

• Apply, on a risk-sensitive basis, counter-measures and enhanced customer due diligence to business relationships and transactions connected to DPRK and Iran
• Apply, on a risk-sensitive basis, enhanced customer due diligence to business relationships and transactions connected to The Bahamas, Botswana, Cambodia, Ghana, Iceland, Mongolia, Pakistan, Panama, Syria, Trinidad and Tobago, Yemen and Zimbabwe
• Take appropriate action to minimise risks, including possible enhanced due diligence, in relation to Sint Maarten and other jurisdictions in FATF's ongoing compliance process
• Apply additional measures required under the International Sanctions Regulations 2013 for jurisdictions marked as subject to sanctions (DPRK, Iran, Syria, Yemen, Zimbabwe)
• Read the annexed FATF and CFATF statements in full to properly assess and determine the risks relating to these jurisdictions

Applies to

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