5th March 2021

The FIAU would like to bring to your attention the latest FATF ‘High-Risk Jurisdictions subject to a Call for Action‘ (previously known as ‘Public Statement’) and ‘Jurisdictions under Increased Monitoring‘ (previously known as ‘Improving global AML/CFT compliance: on-going process’) documents issued by the FATF on 25 February 2021. 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:

1. 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’);

• 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 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 countries in the list of High-Risk Jurisdictions subject to a Call for Action, given that they are already subject to the FATF’s call for countermeasures. Therefore, subject persons should refer to the list of ‘High-Risk Jurisdictions subject to a Call for Action’ adopted in February 2020. While the statement may not necessarily reflect the most recent status in Iran and the Democratic People’s Republic of Korea’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect. Subject persons should refer to Regulation 11 (11) of the Prevention of Money Laundering and Funding of Terrorism Regulations and apply the enhanced due diligence measures therein.

‘Jurisdictions under Increased Monitoring’

In October 2020, the FATF decided to recommence its work to identify new countries with strategic AML/CFT deficiencies and to prioritise the review of listed countries with expired or expiring deadlines. The other listed jurisdictions were given the option to report. The following countries had their progress reviewed by the FATF since October: Albania, Botswana, Cambodia, Ghana, Mauritius, Myanmar, Nicaragua, Pakistan, Panama, Uganda and Zimbabwe. For these countries, updated statements are provided below. Barbados and Jamaica chose to defer reporting due to the pandemic; thus, the statements issued in February 2020 for these jurisdictions apply, but they may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime. Following review, the FATF now also identifies Burkina Faso, the Cayman Islands, Morocco, and Senegal.

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 Prevention of Money Laundering and Funding of Terrorism Regulations.

In the event that any further information is required, you may contact the FIAU on [email protected]