The FATF-lists covered in RAEMONDA,
In a website new flash this week, DNB also mentions that the FATF has published the following two documents highlighting countries with deficiencies in their anti-money laundering and terrorist financing systems.
The “jurisdictions under increased monitoring” show that they want to tackle shortcomings seriously. Other countries show less progress, in particular the high-risk countries mentioned by the FATF in the ‘Call for Action’ (North Korea, Iran).
High-Risk Jurisdictions subject to a Call for Action – February 2021
In June 2016, Iran committed to address serious deficiencies in the AML/CFT regime and agreed an action plan with the FATF to this effect. In recent years, the FATF has therefore partially suspended the call for countermeasures against Iran and monitored the country’s progress. However, in its February 2020 plenary meeting, the FATF found that Iran has still not taken sufficient steps to address serious shortcomings in its AML/CFT regime. Given this flawed progress, the FATF has lifted the suspension of countermeasures against Iran since this year. In particular, the FATF continues to have serious concerns about the terrorist financing risk posed by Iran and the threat it poses to the international financial system.
Against this background, DNB and the Ministry of Finance point out the continuing importance of stricter measures with regard to transactions and business relations related to Iran. Based on the recommendations of the FATF, this could include the ex-ante collection of additional information about the purpose and intended nature of the transactions or business relationships and the performance of stricter monitoring by increasing the number of checks on transactions and business relationships and selecting transaction patterns for further investigation.
In addition, DNB and the Ministry of Finance point out the undiminished importance of immediate reporting of unusual transactions with Iran to FIU. When assessing whether there is an unusual transaction based on the subjective reporting indicator, institutions should take into account, among other things, geographical risk factors. This also includes the involvement in the transaction of parties from countries designated as countries without effective AML / CFT systems, such as Iran.
Finally, DNB and the Ministry of Finance inform institutions of the amendment to Section 9 of the Wwft. The amendment to this article stipulates that institutions are obliged to take concrete stricter measures with regard to transactions, business relationships and correspondent banking relationships related to high-risk countries, such as Iran.
- North Korea
The FATF remains concerned about North Korea’s serious shortcomings in its approach to combating money laundering and terrorist financing and the serious threats they pose to the integrity of the international financial system. The FATF also has serious concerns about the threat posed by North Korea’s nuclear proliferation and proliferation financing. DNB and the Ministry of Finance point out that stricter measures with regard to relations with residents of North Korea and the execution of transactions from / to this country are necessary, also in view of the restrictive measures resulting from the UN and EU sanctions measures.
Jurisdictions under Increased Monitoring – February 2021
The document “Jurisdictions under Increased Monitoring” contains a list of countries that have serious shortcomings in their AML /CFT system but are committed to addressing these shortcomings. This list consists of the following countries:
Albania, Barbados, Botswana, Burkina Faso, Cambodia, Cayman Islands, Ghana, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Uganda, Pakistan, Panama, Senegal, Syria, Yemen and Zimbabwe.
DNB points out that financial institutions are expected to observe the specific circumstances in the context of the AML/CFT measures to be taken with regard to these countries.
The FATF-lists and its regular updates have been incorporated in our digital CDD/KYC software program RAEMONDA by Compliance Innovations as part of the risk analysis.
Would you like to see a demo? Please visit our website www.compliance-innovations.com or contact us at +31 85 489 1829 or firstname.lastname@example.org
The FATF-lists covered in RAEMONDA