FATF Public Statements - March 2022 (2022-03-04)

Summary

This is a BVI Financial Services Commission alert summarising two public statements issued by the Financial Action Task Force (FATF) on 4 March 2022: the list of high-risk jurisdictions subject to a call for action, and the list of jurisdictions under increased monitoring (the grey list). The FSC uses the notice to remind persons subject to BVI AML/CFT requirements to take these FATF findings into account in their risk assessments and customer due diligence.

• High-risk jurisdictions (call for action): Iran and the Democratic People's Republic of Korea (DPRK) remain subject to the FATF's call for enhanced due diligence and, in serious cases, countermeasures, due to significant strategic AML/CFT deficiencies; the underlying statement dates to February 2020 and the review process remains paused.
• Increased monitoring (grey list): 23 jurisdictions are listed as under increased monitoring, including Cayman Islands, Haiti, Jamaica, Jordan, Malta, Mauritius, Morocco, Myanmar, Panama, Philippines, Turkey, UAE (newly added since October 2021) and others named in the statement.
• Removal noted: Zimbabwe was removed from the increased monitoring list following the October 2021 review, in recognition of AML/CFT progress made.
• FSC guidance: The FSC encourages all persons dealing with customers or transactions connected to the named jurisdictions to apply appropriate or enhanced customer due diligence measures, and reminds persons regulated under the Anti-Money Laundering Regulations, 2008 and the AML/CFT Code of Practice, 2008 to consider the associated money laundering and terrorist financing risks.

The notice is informational, reproducing and summarising FATF's findings rather than creating new BVI legal rules; it does not set a compliance deadline but flags an ongoing expectation to factor these jurisdictional risk ratings into AML/CFT risk assessments and due diligence practices.

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 jurisdictions named in the FATF's March 2022 public statements
• Apply enhanced due diligence and, where warranted, countermeasures when dealing with customers or transactions connected to Iran or the DPRK
• Apply appropriate or enhanced customer due diligence when dealing with customers or transactions connected to any jurisdiction listed as under increased monitoring

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