Financial Action Task Force (FATF) - Advisory Warning No. 1 of 2008

Summary

This is an advisory issued by the BVI Financial Services Commission relaying a 28 February 2008 FATF public statement identifying deficiencies in the AML/CFT regimes of six jurisdictions. It does not create new rules but advises regulated persons to be aware of the heightened money laundering and terrorist financing risks associated with these jurisdictions.

• Jurisdictions flagged by FATF: Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe, and the northern part of Cyprus
• Uzbekistan: Presidential decrees effectively repealed the AML/CFT regime, generating money laundering and terrorist financing vulnerability
• Iran: Commitments to improve AML/CFT noted, but risks remain from continuing deficiencies
• Pakistan: Recent progress on AML/CFT legislation noted, but deficiencies remain that create ML/TF vulnerability
• Turkmenistan and Sao Tome and Principe: Steps taken to address concerns are welcomed, but deficiencies still remain
• Northern Cyprus: Cited as having AML/CFT deficiencies creating ML/TF vulnerability

The FSC advises the general public and all persons subject to the Anti-money Laundering Regulations, 2008 and the Anti-money Laundering and Terrorist Financing Code of Practice, 2008 to note these FATF concerns and apply appropriate or enhanced customer due diligence when dealing with customers or transactions involving any of the six named jurisdictions.

Key obligations

• Regulated and other persons subject to the Anti-money Laundering Regulations, 2008 and the AML/TF Code of Practice, 2008 must consider the money laundering and terrorist financing risks associated with Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe, and the northern part of Cyprus
• Apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving any of the six identified jurisdictions

Applies to

regulated persons, persons required to comply with the Anti-money Laundering Regulations, 2008, persons required to comply with the Anti-money Laundering and Terrorist Financing Code of Practice, 2008, general public