AML-ATF Ministerial Advisory 3/2023: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2023-11-16)

Summary

This Ministerial Advisory, issued by Bermuda's Minister of Legal Affairs on 16 November 2023, draws the regulated sector's attention to the FATF's 27 October 2023 public statements identifying jurisdictions with strategic AML/CFT deficiencies. It replaces all previous advisories on this subject and reminds relevant persons of their existing obligation under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations) to apply enhanced due diligence to higher-risk jurisdictions.

• Call for Action jurisdictions: DPRK, Iran and Myanmar are to be treated as high risk, with counter-measures and enhanced due diligence applied in accordance with the risks (DPRK and Iran are also subject to sanctions measures).
• Increased monitoring (grey list) jurisdictions: Barbados, Bulgaria, Burkina Faso, Cameroon, Democratic Republic of the Congo, Croatia, Gibraltar, Haiti, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkiye, Uganda, United Arab Emirates, Vietnam and Yemen require appropriate risk-mitigating actions, which may include enhanced due diligence.
• Delisted jurisdictions: Cayman Islands, Jordan and Panama are noted as having made sufficient progress and are no longer subject to the FATF's increased monitoring process.
• Legal basis: Regulation 11(1)(aa) and 11(1)(ab) of the POCA Regulations require risk-sensitive enhanced customer due diligence for customers or transactions linked to countries identified by FATF or CFATF as higher risk, or otherwise presenting higher ML/TF/corruption/sanctions risk.

The advisory applies to all entities and persons covered by Regulation 4 of the POCA Regulations and instructs them to read the annexed FATF statements in full when assessing jurisdiction-specific risk, 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 customers or transactions connected to DPRK, Iran and Myanmar, and apply counter-measures where called for by FATF.
• Relevant persons must take appropriate risk-mitigating actions, which may include enhanced due diligence, for customers or transactions connected to the listed jurisdictions under increased monitoring (grey list).
• Firms must consult the International Sanctions Regulations 2013 for additional required measures regarding DPRK, Iran, Myanmar, Democratic Republic of the Congo, Haiti, South Sudan, Syria and Yemen, which are also subject to sanctions.
• Relevant persons should read the full annexed FATF statements before making jurisdiction risk determinations and should not treat the enumerated lists as 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