FATF Public Statement No. 7 of 2018 (4 July 2018)

Summary

This is a notice from the British Virgin Islands Financial Services Commission (FSC) reproducing FATF's 29 June 2018 public statements. It reaffirms FATF's call for counter-measures against the Democratic People's Republic of Korea (DPRK) and enhanced due diligence measures against Iran, and separately lists jurisdictions under FATF's ongoing AML/CFT compliance process.

• DPRK: FATF calls on jurisdictions to apply effective counter-measures and targeted financial sanctions, and to close DPRK bank branches, subsidiaries and representative offices and terminate correspondent relationships, in line with UNSC resolutions.
• Iran: FATF continues suspension of counter-measures but urges enhanced customer due diligence for business relationships and transactions involving Iran, consistent with FATF Recommendation 19; expected Iran to enact AML/CFT law amendments and ratify Palermo and TF Conventions by October 2018.
• Jurisdictions with strategic AML/CFT deficiencies (action plans in progress): Ethiopia, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen.
• Jurisdictions removed from ongoing compliance process: Iraq and Vanuatu are no longer subject to FATF's ongoing global AML/CFT compliance process.
• FSC advisory: The FSC advises regulated and other 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 the identified jurisdictions.

The notice is informational, forwarding FATF's findings and expectations to BVI regulated entities; it does not itself create new regulatory rules beyond directing attention to existing AML/CFT obligations under BVI legislation.

Key obligations

• Regulated and other persons subject to the Anti-Money Laundering Regulations, 2008 must consider the money laundering and terrorist financing risks associated with the identified jurisdictions (DPRK, Iran, and others named in the FATF statements) and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving those jurisdictions.

Applies to

regulated persons, other persons required to comply with the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008