FATF Public Statements of 19 October, 2018 (2018-11-15)

Summary

This is a public alert issued by the BVI Financial Services Commission reproducing two FATF statements from 19 October 2018. It advises regulated and other persons subject to the Anti-Money Laundering Regulations, 2008 and the AML/TF Code of Practice, 2008 to take note of FATF's updated positions on high-risk and monitored jurisdictions and to adjust customer due diligence accordingly.

• Call for counter-measures: North Korea (DPRK) remains subject to a FATF call for members to apply counter-measures and targeted financial sanctions due to ongoing AML/CFT and proliferation financing risks.
• Enhanced due diligence: Iran remains subject to a call for enhanced due diligence measures proportionate to risk; FATF continues suspension of counter-measures but expects Iran to complete outstanding Action Plan items by February 2019.
• Jurisdictions under increased monitoring: The Bahamas, Botswana, Ethiopia, Ghana, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen have committed to action plans with FATF to address strategic AML/CFT deficiencies, as set out in the 'Improving Global AML/CFT Compliance: On-Going Process' statement.

The FSC directs regulated persons to consider the money laundering and terrorist financing risks associated with these jurisdictions and apply appropriate or enhanced customer due diligence when dealing with customers or transactions involving them. Links to the original FATF statements are provided for reference.

Key obligations

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

Applies to

regulated persons under the Anti-Money Laundering Regulations, 2008, financial institutions, other persons required to comply with AML/TF Code of Practice, 2008

Deadlines

• February 2019: FATF expects Iran to have brought into force necessary AML/CFT legislation by this date, or further steps will be taken; relevant for BVI entities' risk assessment of Iran-related dealings.