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After the Financial Action Task Force issued public statements regarding updates to its lists of jurisdictions with strategic AML/CFT/CPF deficiencies.
The Financial Action Task Force (FATF) is an intergovernmental global watchdog that sets international standards to counter money laundering, terrorism financing, and proliferation financing (AML/CFT/CPF). In its plenary meeting this month, the FATF has updated its lists of jurisdictions that lack adequate measures for AML/CFT/CPF.
The Financial Crimes Enforcement Network (FinCEN) has informed US financial institutions about these updates in order to guide them about FATF’s stance towards these jurisdictions while reviewing their obligations and risk-based practices.
On March 4, 2022, the FATF removed Zimbabwe from its list of Jurisdictions under Increased Monitoring and added the United Arab Emirates (UAE), noting the UAE’s significant progress in strengthening its AML/CFT regime as well as its February 2022 high-level political commitment to completing its FATF action plan.
The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same with Iran and the Democratic People’s Republic of Korea still subject to the FATF’s countermeasures.
The FATF issued two statements as part of its listing and monitoring process to ensure compliance with international standards:
- Jurisdictions under Increased Monitoring, which publicly identifies jurisdictions with strategic deficiencies in their AML/CFT/CPF regimes that have committed to, or are actively working with, the FATF to address those deficiencies in accordance with an agreed-upon timeline.
- High-Risk Jurisdictions Subject to a Call for Action, which publicly identifies jurisdictions with significant strategic deficiencies in their AML/CFT/CPF regimes and calls on all FATF members to apply enhanced due diligence, and, in the most serious cases, apply counter-measures to protect the international financial system from the money laundering, terrorist financing, and proliferation financing risks emanating from the identified countries.
Suggested read: FATF to “Grey List” UAE for AML Failings