AML-ATF Ministerial Advisory 3/2024: Money Laundering and Terrorist Financing controls in higher risk jurisdictions (2024-12-02)

Summary

This is a Ministerial Advisory issued by Bermuda's Minister of Justice (published via the BMA) drawing attention to the latest FATF public statements on jurisdictions with strategic AML/CFT deficiencies. It reminds the regulated sector and other 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 customers and transactions linked to higher-risk countries. This Advisory supersedes all prior advisories on the same subject.

• Legal basis: Regulation 11(1)(aa) and 11(1)(ab) of the POCA Regulations require relevant persons to apply enhanced customer due diligence, on a risk-sensitive basis, to persons or transactions linked to FATF-identified high-risk countries or countries otherwise representing higher ML/TF/sanctions risk.
• Call for Action jurisdictions: DPRK, Iran and Myanmar are identified by FATF as high risk; firms should apply countermeasures and enhanced due diligence proportionate to the risk (Myanmar's action plan review is expected by February 2025, after which countermeasures may follow if no progress is made).
• Increased Monitoring jurisdictions: A longer list (Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Cote d'Ivoire, Croatia, DR Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, Yemen) is flagged for firms to take appropriate risk-based actions, which may include enhanced due diligence.
• Sanctions overlay: Jurisdictions marked with an asterisk (DPRK, Iran, Myanmar, DR Congo, Haiti, Lebanon, Mali, South Sudan, Syria, Venezuela, Yemen) are also subject to sanctions measures requiring additional measures under the International Sanctions Regulations 2013.
• Scope: Applies to all entities and persons subject to Regulation 4 of the POCA Regulations: AML/ATF regulated financial institutions, independent professionals, casino operators, FIA-registered dealers in high value goods, and real estate brokers and agents.

The Advisory notes that the FATF lists are not exhaustive since many jurisdictions have not yet been assessed, so firms must continue to apply a broader risk-based approach beyond the named countries.

Key obligations

• Apply enhanced customer due diligence, on a risk-sensitive basis, to business relationships and transactions involving persons or entities from or in the FATF-listed high-risk (Call for Action) jurisdictions: DPRK, Iran and Myanmar.
• Consider applying countermeasures where called for, particularly in relation to DPRK and Iran, in accordance with Regulation 11(1)(aa)/(ab) of the POCA Regulations.
• Take appropriate risk-mitigating actions, potentially including enhanced due diligence, for customers or transactions connected to jurisdictions under increased monitoring (the grey list).
• Read the full FATF statements in Annexes A and B to properly assess and document the risk associated with each listed jurisdiction.
• Apply additional measures under the International Sanctions Regulations 2013 for jurisdictions marked as subject to sanctions at the time of publication.
• Ensure risk assessments account for 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

Deadlines

• February 2025: FATF will consider countermeasures against Myanmar if no further progress is made on its action plan by this date.