It’s that time again: FinCEN advisory on FATF-identified jurisdictions

The FATF assessments of Iran and North Korea hasn’t changed. Here is the other list of jurisdictions with strategic AML/CFT deficiencies:

  1. The FATF publicly identi es jurisdictions with strategic AML/CFT regime de ciencies for which the jurisdictions have developed an action plan with the FATF. Consequently, these jurisdictions are included in the following list of jurisdictions with strategic AML/CFT de ciencies, as described in the FATF’s “Improving Global AML/CFT Compliance: On-going Process”. 

Please click on each jurisdiction for additional information.
Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Uganda, Vanuatu, and Yemen.

Summary of changes to this list

  • Afghanistan is no longer subject to the FATF’s on-going global AML/CFT compliance process. The FATF has found that Afghanistan has made signi cant technical progress in improving
    its AML/CFT regime and has established the legal and regulatory framework to meet its commitments in its action plan. Afghanistan will work with its FATF-style regional body, the Asia Paci c Group (APG), to continue to address the full range of AML/CFT issues identi ed in its mutual evaluation report, in particular, fully implementing the cross-border regulations at its o cial land border crossing points, which is an area of risk.\
  • Lao PDR is no longer subject to the FATF’s on-going global AML/CFT compliance process. The FATF has found that Lao PDR has made signi cant technical progress in improving its AML/ CFT regime and has established the legal and regulatory framework to meet its commitments in its action plan. Lao PDR will work with APG to continue to address the full range of AML/CFT issues identi ed in its mutual evaluation report. 

And FinCEN’s guidance on these:

  1. U.S. nancial institutions also should consider the risks associated with the AML/CFT de ciencies of the countries identi ed under this section (Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Uganda, Vanuatu, and Yemen).14 With respect to these jurisdictions, U.S. nancial institutions are reminded of their obligations to comply with the general due diligence obligations under 31 CFR § 1010.610(a) in addition to their general obligations under 31 U.S.C. § 5318(h) and its implementing regulations.15 As required under 31 CFR § 1010.610(a), covered nancial institutions should ensure that their due diligence programs, which address correspondent accounts maintained for foreign nancial institutions, include appropriate, speci c, risk-based, and, where necessary, enhanced policies, procedures, and controls
    that are reasonably designed to detect and report known or suspected money laundering activity conducted through or involving any correspondent account established, maintained,
    administered, or managed in the United States. 
     

Review of General Guidance

AML Program Risk Assessment: For jurisdictions that are removed from the FATF listing and monitoring process (Afghanistan and Lao PDR), nancial institutions should take the FATF’s decisions and the reasons behind the delisting into consideration when assessing risk consistent with their obligations under 31 CFR § 1010.210.

Suspicious Activity Reports (SARs): If a nancial institution knows, suspects, or has reason to suspect that a transaction involves funds derived from illegal activity or that a customer has otherwise engaged in activities indicative of money laundering, terrorist nancing, or other violation of federal law or regulation, the nancial institution must le a SAR.16 

Links:

FinCEN Advisory

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