FATF Public Statement No. 8 of 2018 (15 November, 2018)

Summary

This is a notice from the BVI Financial Services Commission relaying FATF Public Statement No. 8 of 2018 (issued 19 October 2018), which reaffirms FATF's blacklisting of Iran and the Democratic People's Republic of Korea (DPRK) for AML/CFT deficiencies, and separately lists jurisdictions with strategic deficiencies that have committed to FATF action plans.

• DPRK: FATF reiterates its call for members to apply counter-measures, enhanced scrutiny, and targeted financial sanctions on business with DPRK, and to close DPRK bank branches/subsidiaries and terminate correspondent relationships where required by UN resolutions.
• Iran: FATF continues suspension of counter-measures but expects Iran to bring outstanding AML/CFT legislation into force by February 2019; members are urged to apply enhanced due diligence to transactions and relationships involving Iran.
• Other listed jurisdictions: The Bahamas, Botswana, Ethiopia, Ghana, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen are named as having committed to FATF action plans to address identified AML/CFT deficiencies.

The FSC advises all regulated persons and others subject to the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008 to note FATF's concerns about these jurisdictions, assess associated money laundering and terrorist financing risks, and apply appropriate or enhanced customer due diligence when dealing with customers or transactions connected to the named jurisdictions.

Key obligations

• Regulated and other persons subject to the AML Regulations, 2008 and the AML/TF Code of Practice, 2008 must consider the money laundering and/or terrorist financing risks associated with Iran and DPRK and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving these jurisdictions.
• Financial institutions are urged to apply enhanced due diligence, including obtaining information on the reasons for intended transactions, to business relationships and transactions with natural and legal persons from Iran.
• Financial institutions and jurisdictions are called on to apply effective counter-measures and targeted financial sanctions in accordance with applicable UN Security Council Resolutions with respect to DPRK, and to close existing DPRK bank branches, subsidiaries and representative offices and terminate correspondent relationships where required.

Applies to

all regulated persons, persons required to comply with the Anti-Money Laundering Regulations, 2008, financial institutions

Deadlines

• February 2019: FATF expects Iran to have brought into force necessary AML/CFT legislation in line with FATF standards by this date, or further steps will be taken