The Financial Crimes Enforcement Network ("FinCEN") notified U.S. financial institutions that the Financial Action Task Force ("FATF") has updated its list of jurisdictions with strategic deficiencies regarding anti-money laundering and combating the financing of terrorism ("AML/CFT"). Changes to the FATF list may affect U.S. financial institutions' risk-based due diligence obligations concerning the affected jurisdictions.
The "FATF Public Statement," which was published on November 3, 2017, identifies jurisdictions that are subject to its call for countermeasures or are subject to enhanced due diligence due to their strategic AML/CFT deficiencies. The Democratic People's Republic of Korea ("DPRK") was identified for counter-measures – which represents no change from the prior advisory. The FATF Public Statement noted that United Nations and U.S. sanctions prohibit U.S. persons, including U.S. financial institutions, from engaging in most transactions involving the DPRK in response to North Korea's ongoing development of weapons of mass destruction. In addition, Iran was identified for continued enhanced due diligence subject to its implementation of previously announced AML/CFT reforms.
The underlying FATF publication, "Improving Global AML/CFT Compliance: On-going Process," also identified the following jurisdictions as having strategic AML/CFT deficiencies: Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.