30th June 2020

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 the 30 June 2020. 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 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 not made sufficient progress in addressing their AML/CFT deficiencies or have not committed to an action plan developed with the FATF (also 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 Chapter 8 of the FIAU Implementing Procedures Part I, which is legally binding upon all subject persons in terms of Regulation 17 of the Prevention of Money Laundering and Funding of Terrorism Regulations (S.L. 373.01).

‘High-Risk Jurisdictions subject to a Call for Action’

Due to the COVID-19 situation, the FATF decided on a general pause in the review process for the list of high-risk jurisdictions subject to a call for action. 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’

The FATF decided on a general pause in the review process for the list of jurisdictions under increased monitoring due to the COVID-19 situation. Consequently, the FATF granted jurisdictions an additional four months for deadlines, with the exception of Mongolia and Iceland who requested to continue on their original schedule. As a result, the FATF reviewed and virtually met with only these jurisdictions and the result of these discussions is noted below.

Iceland

In October 2019, Iceland made a high-level political commitment to work with the FATF to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies. The FATF has made the initial determination that Iceland has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of Iceland’s AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future. Specifically, Iceland has made the following key reforms: (1) ensuring the access to accurate basic and beneficial ownership information for legal persons by competent authorities in a timely manner; (2) introducing an automated system for STR filing and enhancing the FIU’s capacity in its strategic and operational analysis; (3) ensuring implementation of TFS requirements among FIs and DNFBPs through effective supervision; and (4) enabling effective oversight and monitoring of NPOs with adequate resources and in line with the identified TF risks. The FATF will continue to monitor the COVID-19 situation and conduct an on-site visit at the earliest possible date.

Mongolia

In October 2019, Mongolia made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies. The FATF has made the initial determination that Mongolia has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of Mongolia’s AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future. Specifically, Mongolia has made the following key reforms: (1) improving sectoral ML/TF risk understanding by DNFBP supervisors, applying a risk-based approach to supervision and applying proportionate and dissuasive sanctions for breaches of AML/CFT obligations; (2) demonstrating increased investigations and prosecutions of different types of ML activity in line with identified risks; (3) demonstrating further seizure and confiscation of falsely/non-declared currency and applying effective, proportionate and dissuasive sanctions; (4) demonstrating cooperation and coordination between authorities to prevent sanctions evasion; and (5) monitoring compliance by FIs and DNFBPs with their PF-related TFS obligations, including the application of proportionate and dissuasive sanctions. The FATF will continue to monitor the COVID-19 situation and conduct an on-site visit at the earliest possible date.

The statement on Jurisdictions under Increased Monitoring, adopted in February 2020 remains in effect for the remaining jurisdictions identified at that time:

• Albania
• The Bahamas
• Barbados
• Botswana
• Cambodia
• Ghana
• Jamaica
• Mauritius
• Myanmar
• Nicaragua
• Pakistan
• Panama
• Syria
• Uganda
• Yemen
• Zimbabwe

Reference should be made to the statement issued in February 2020 for details concerning each of these jurisdictions. These are available on the FATF website and on the FIAU’s website through the following link https://fiaumalta.org/country-statements/

However, the statement may not necessarily reflect the most recent status in the jurisdiction’s AML/CFT regime. 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]