FATF Public Statements - June 2021 (2021-06-25)

Summary

This is a BVI FSC alert relaying two FATF public statements issued on 25 June 2021: one on high-risk jurisdictions subject to a call for action, and one on jurisdictions under increased monitoring (the FATF grey list). It is informational and advises regulated persons to factor these FATF designations into their AML/CFT risk assessments and customer due diligence practices.

• High-risk jurisdictions: FATF reiterated that the Democratic People's Republic of Korea and Iran have significant strategic AML/CFT deficiencies; FATF calls for enhanced due diligence and, in serious cases, other countermeasures against these jurisdictions.
• Jurisdictions under increased monitoring (grey list): 22 jurisdictions are listed, including Albania, Barbados, Botswana, Cambodia, Cayman Islands, Haiti, Jamaica, Malta, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Syria, Uganda, Yemen, Zimbabwe and Burkina Faso; these have committed to address AML/CFT deficiencies and are subject to risk-based (not automatically enhanced) monitoring.
• Removal: Ghana was removed from the grey list in recognition of AML/CFT progress made.
• FSC guidance: The FSC advises persons subject to the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008 to note the FATF concerns and consider associated money laundering and terrorist financing risks, and encourages appropriate or enhanced customer due diligence when dealing with customers or transactions connected to the identified jurisdictions.

The notice does not impose new legal requirements beyond directing regulated persons to apply existing AML/CFT risk assessment and due diligence obligations with the FATF-identified jurisdictions in mind.

Key obligations

• Persons subject to the Anti-Money Laundering Regulations, 2008 and the AML/CFT Code of Practice, 2008 should consider the money laundering and terrorist financing risks associated with the FATF-identified high-risk and increased-monitoring jurisdictions.
• Apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions connected with jurisdictions identified in the FATF statements.

Applies to

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