FATF Public Statement - Public Statement No. 3 of 2014 (13 August 2014)

Summary

This is a notice from the BVI Financial Services Commission reproducing two FATF statements issued 27 June 2014 (updating an earlier 22 June 2012 series of statements). It identifies jurisdictions with strategic anti-money laundering and counter-terrorist financing (AML/CFT) deficiencies and advises BVI regulated persons to factor these into their risk assessments and due diligence.

• Highest risk / counter-measures called for: Iran and the Democratic People's Republic of Korea (DPRK) - FATF calls for enhanced due diligence and, where applicable, counter-measures on business relationships and transactions involving these jurisdictions.
• Insufficient progress on action plans: Algeria, Ecuador, Indonesia and Myanmar are named as not having made sufficient progress addressing agreed AML/CFT deficiencies.
• Jurisdictions with action plans in progress: Afghanistan, Albania, Angola, Argentina, Cambodia, Cuba, Ethiopia, Iraq, Kuwait, Lao PDR, Namibia, Nicaragua, Pakistan, Panama, Papua New Guinea, Sudan, Syria, Tajikistan, Turkey, Uganda, Yemen and Zimbabwe are listed as committed to working with FATF to improve their AML/CFT frameworks.
• Removed from monitoring: Kenya, Kyrgyzstan, Mongolia, Nepal and Tanzania are identified as no longer subject to FATF's ongoing global AML/CFT compliance process.

The FSC directs all persons subject to the Anti-Money Laundering Regulations, 2008 and the AML/CFT Code of Practice, 2008 to note these FATF concerns and apply appropriate or enhanced customer due diligence when dealing with customers or transactions connected to the named jurisdictions. The notice is informational, reproducing the FATF statements in full, and does not itself create new rules beyond directing application of existing AML/CFT due diligence obligations to these risk factors.

Key obligations

• Regulated and other persons subject to the Anti-Money Laundering Regulations, 2008 and the AML/CFT Code of Practice, 2008 must consider the money laundering and terrorist financing risks associated with the named jurisdictions and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving Iran, DPRK, or the other identified jurisdictions.

Applies to

regulated persons under the Anti-Money Laundering Regulations, 2008, persons subject to the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008