Regulatory Alerts2018-01-01
Decision No. (1) of 2018 on High-Risk and/or Non-Compliant Countries Regarding AML/CFT Standards
The Financial Follow-Up Unit of the State of Palestine issued Decision No. 1 of 2018 to designate North Korea, Iran, Serbia, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Vanuatu, Yemen, and Tunisia as high-risk or partially compliant jurisdictions regarding AML/CFT standards. The directive mandates all Palestinian financial institutions to apply enhanced or ongoing due diligence measures tailored to each country, while imposing a complete prohibition on financial dealings with North Korea. This decision updates previous regulatory tables and aligns national compliance protocols with FATF recommendations and national anti-money laundering legislation.
Financial Follow-Up Unit
State of Palestine
Decision No. (1) of 2018
Issued by the Financial Follow-Up Unit
Dated 20/March/2018
Regarding High-Risk and/or Non-Compliant Countries Regarding AML/CFT Standards
Based on the provisions of Legislative Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments, particularly Paragraph (16) of Article (20),
Pursuant to Decision No. (8/J/2016) of the National Committee for Combating Money Laundering and Financing of Terrorism, issued on 01/12/2016, regarding the delegation to the Financial Follow-Up Unit to publish the list of high-risk countries issued periodically by the Financial Action Task Force (FATF),
In addition to Decision No. (6/J/2016) of the National Committee for Combating Money Laundering and Financing of Terrorism, issued on 01/08/2017, regarding the prohibition of financial dealings with the Democratic People's Republic of Korea,
And based on public interest requirements, it is decided as follows:
First
The following countries are considered high-risk as they are non-compliant or partially compliant with AML/CFT standards:
(a) Democratic People's Republic of Korea (North Korea) (financial dealings are prohibited based on the National Committee decision).
(b) Iran, Serbia, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Republic of Vanuatu, Yemen, Tunisia (those countries are subject to specific measures).
Financial Follow-Up Unit
State of Palestine
Second
All financial institutions operating in Palestine shall adopt the specific measures outlined in the attached table to this Decision when dealing with the countries mentioned in Article (First) of this Decision.
Third
All competent authorities shall implement the provisions of this Decision, effective from the date of its issuance.
A. Wael Lavi
Director, Financial Follow-Up Unit
- Attachment: Measures to be taken when dealing with high-risk countries.
Financial Follow-Up Unit
State of Palestine
- Attachment to Decision No. (2018/1) issued by the Financial Follow-Up Unit on 20/03/2018
| Country Name | Measures to be Taken |
|---|---|
| Democratic People's Republic of Korea (North Korea) | All financial institutions are prohibited from conducting financial dealings with North Korea. |
| Iran | Continue to apply enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to it, whether for natural or legal persons, and consider correspondent banking relationships with financial institutions operating and licensed in Iran, in accordance with the provisions of Legislative Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments, related instructions, and FATF Recommendation No. 19. |
| Serbia | Given that these countries have made a high-level political commitment to address strategic deficiencies, all financial institutions shall apply ongoing due diligence measures regarding business relationships with these countries, including financial transactions executed from or to them, to mitigate red flags and identify fund sources, in accordance with Legislative Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments and related instructions. |
| Ethiopia | |
| Iraq | |
| Syria | |
| Sri Lanka | |
| Republic of Vanuatu | |
| Yemen | |
| Tunisia | |
| Trinidad and Tobago |
- This table updates the table attached to Decision No. (2017/4) on High-Risk and Non-Compliant Countries Regarding AML/CFT Standards, issued by the Financial Follow-Up Unit on 12/12/2017.
State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps
3/20/2018
Countries - Financial Action Task Force (FATF)
High-risk and other monitored jurisdictions
Home → Countries → High-risk and other monitored jurisdictions
High-risk and other monitored jurisdictions:
| Country | Call for action | Other monitored jurisdictions |
|---|---|---|
| Democratic People's Republic of Korea (DPRK) | • | |
| Ethiopia | • | |
| Iran | • | |
| Iraq | • | |
| Serbia | • | |
| Sri Lanka | • | |
| Syria | • | |
| Trinidad and Tobago | • | |
| Tunisia | • | |
| Vanuatu | • | |
| Yemen | • |
This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or areas.
On the basis of the results of the review by the International Co-operation Review Group (ICRG), the FATF identifies jurisdictions with strategic AML/CFT deficiencies in the following public documents that are issued three times a year: FATF Public Statement (call for action) and Improving Global AML/CFT Compliance: On-going Process (other monitored jurisdictions).
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