Public Statement No. 4 of 2010 - (13 December 2010)

Summary

This is a public statement in which the BVI Financial Services Commission passes on two FATF statements issued 22 October 2010 concerning jurisdictions with anti-money laundering and counter-terrorist financing (AML/CFT) deficiencies. It reminds regulated and other persons subject to the Anti-Money Laundering Regulations, 2008 and the AML/CFT Code of Practice, 2008 to take note of the FATF's concerns and adjust their risk approach accordingly.

• Highest-risk jurisdictions: Iran is subject to a FATF call for counter-measures, and the Democratic People's Republic of Korea (DPRK/North Korea) is identified as having strategic AML/CFT deficiencies with no committed action plan.
• Jurisdictions with action plans: FATF also updated its list of jurisdictions that have committed to action plans to fix AML/CFT deficiencies, including Angola, Antigua & Barbuda, Bangladesh, Bolivia, Ecuador, Ethiopia, Ghana, Greece, Honduras, Indonesia, Kenya, Morocco, Myanmar, Nepal, Nigeria, Pakistan, Paraguay, Philippines, Sao Tome and Principe, Sri Lanka, Sudan, Syria, Tanzania, Thailand, Trinidad and Tobago, Turkey, Turkmenistan, Ukraine, Venezuela, Vietnam and Yemen.
• Advisory action: The FSC advises regulated and other AML-obligated persons to consider the money laundering and terrorist financing risks associated with these jurisdictions and to apply appropriate or enhanced customer due diligence when dealing with customers or transactions involving Iran or DPRK.

The statement is informational and risk-advisory rather than creating new rules; it operates by directing existing customer due diligence obligations under the 2008 AML Regulations and Code of Practice toward the newly flagged jurisdictions. FATF noted it would consider calling for strengthened counter-measures against Iran in February 2011 if Iran failed to improve its AML/CFT regime.

Key obligations

• Regulated and other AML-obligated persons must apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving Iran or the Democratic People's Republic of Korea (DPRK).
• Regulated and other AML-obligated persons must consider the money laundering and terrorist financing risks associated with jurisdictions identified by FATF as having strategic AML/CFT deficiencies.

Applies to

all persons required to comply with the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008 (regulated and other financial services persons in the BVI)

Deadlines

• February 2011: FATF indicated it would consider calling on members to strengthen counter-measures against Iran if Iran failed to take concrete steps to improve its AML/CFT regime by this time.