1st March 2024
The FIAU would like to bring to your attention the latest FATF ‘High-Risk Jurisdictions subject to a Call for Action‘ and ‘Jurisdictions under Increased Monitoring’ documents issued by the FATF on the 23 of February 2024. A copy of these documents has been uploaded on the FIAU’s website under ‘Country Statements’.
The FATF classifies the jurisdictions included in these documents into different categories, in accordance with the deficiencies present in such jurisdictions, and the level of commitment and progress made in addressing such deficiencies.
The categories are the following:
- Jurisdictions with strategic deficiencies in their regime to counter money laundering, terrorist financing, and financing of proliferation that have failed to meaningfully address their AML/CFT deficiencies and are subject to a call for counter-measures (listed under ‘High-Risk Jurisdictions subject to a Call for Action’). This process is informally referred to as “black listing”;
- Jurisdictions that have developed an action plan with the FATF and have made a high-level political commitment to address their AML/CFT deficiencies (listed in the ‘Jurisdictions under Increased Monitoring’). This process is informally referred to as “grey listing”. This document also lists jurisdictions that are no longer subject to the FATF on-going global AML/CFT compliance process, where applicable.
Subject persons are required to implement the measures set out under Regulation 11 of the Prevention of Money Laundering and Funding of Terrorism Regulation S.L. 373.01 (“PMLFTR”) and under Chapter 8 of the FIAU Implementing Procedures Part I, which is legally binding upon all subject persons in terms of Regulation 17 of the PMLFTR.
High-Risk Jurisdictions subject to a Call for Action
Since February 2020, in light of the COVID-19 pandemic, the FATF has paused the review process for Iran and the Democratic People’s Republic of Korea (DPRK), given that they are already subject to the FATF’s call for countermeasures. Iran reported in January 2024 with no material changes in the status of its action plan. Therefore, reference should be made to the statement adopted on 21 February 2020 on these jurisdictions. While the statement may not necessarily reflect the most recent status of Iran and the DPRK’s AML/CFT regimes, the FATF’s call to apply countermeasures on these high-risk jurisdictions remains in effect .
In October 2022, the FATF added Myanmar to the list of jurisdictions subject to a call for action until its full action plan is completed. It should be noted that the statement issued is still applicable.
Subject persons should refer to Regulation 11(11) of the PMLFTR and apply the enhanced due diligence measures therein to the above-mentioned jurisdictions.
Jurisdictions under Increased Monitoring
The following countries had their progress reviewed by the FATF since October 2023: Bulgaria; Burkina Faso, Croatia, Democratic Republic of Congo, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Tanzania, Türkiye, UAE, and Uganda. Cameroon, Haiti, Syria, Vietnam and Yemen chose to defer reporting; thus, the statements issued in 2023 for those jurisdictions are applicable, but may not necessarily reflect the most recent status of the jurisdictions’ AML/CFT regimes.
Following review, the FATF now also identifies Kenya and Namibia as jurisdictions under increased monitoring.
With regards to the enhanced due diligence measures to be applied to the above-mentioned jurisdictions, subject persons should refer to Regulation 11(10) of the PMLFTR.
Jurisdictions no longer subject to Increased Monitoring by the FATF
The FATF has removed Barbados, Gibraltar, Uganda, and the United Arab Emirates from the grey list.
A more detailed summary of the outcomes of the FATF Plenary which took place between 21-23 February 2024 can be accessed from the following link.
FATF Statement on the Russian Federation
The FATF recalls the statement it issued on the 24 February 2023 on the Russian Federation. The FATF notes with concern the potential risks to the international financial system, including growing financial connectivity of Russia with countries subject to FATF countermeasures, risks of proliferation financing, and malicious cyber activities and ransomware attacks. The FATF reminds all jurisdictions to continue to remain vigilant due to the above-mentioned risks. As a suspended member of the FATF, the Russian Federation still remains accountable for its obligation to implement the FATF Standards. The full text of the FATF Statement on the Russian Federation can be found here.
If any further information is required, you may contact the FIAU on [email protected]