2022-07-28
Added · Updated
Banco de Portugal requires credit institutions, financial companies, payment institutions, and electronic money institutions to apply enhanced due diligence and specific countermeasures for business relationships and transactions involving North Korea and Iran, as identified by the Financial Action Task Force (FATF) as high-risk jurisdictions subject to a call for action. Institutions must also adopt risk-proportionate enhanced measures for jurisdictions under increased monitoring, including the newly added Gibraltar, while noting Malta's removal from that list. The circular mandates adherence to these measures in compliance with Law No. 83/2017 to mitigate risks of money laundering, terrorist financing, and weapons proliferation.
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Circular Letter No. CC/2022/00000013
Sent to:
Credit Institutions, Financial Companies, Payment Institutions, and Electronic Money Institutions.
Mod. 99999924/T – 01/14
Subject: Disclosure of FATF communications (June 2022 plenary meeting)
I. COMMUNICATIONS ISSUED BY THE FATF
With the aim of protecting the international financial system from the risks associated with money laundering and terrorist financing, as well as fostering adequate compliance with AML/CFT standards, the FINANCIAL ACTION TASK FORCE (FATF) acts to identify jurisdictions presenting strategic deficiencies in money laundering and terrorist financing prevention and to develop coordinated and decisive responses worldwide to combat these realities.
Following the plenary meeting held between June 14 and 17, 2022, the FATF released the following documents:
a. HIGH-RISK JURISDICTIONS SUBJECT TO A CALL FOR ACTION, dated June 17, 2022, which identifies jurisdictions subject to countermeasures and jurisdictions with strategic deficiencies in money laundering and terrorist financing prevention that have not made sufficient progress in overcoming these deficiencies and/or have not agreed with the FATF on an action plan for this purpose. The full content of this document can be consulted at: https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-june-2022.html http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-march-2022.html
b. JURISDICTIONS UNDER INCREASED MONITORING, dated June 17, 2022, which identifies jurisdictions with strategic deficiencies in money laundering and terrorist financing prevention that have developed an action plan to overcome them and are subject to a monitoring process by the FATF. The full content of this document can be consulted at: https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-june-2022.html http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-march-2022.html http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-march-2022.html
Regarding these documents, the following should be noted:
BANCO DE PORTUGAL
Headquarters: Rua do Comércio, 148 • 1100-150 Lisbon • Portugal T +351 213 130 000 • www.bportugal.pt Tax ID: 500792771 • Share Capital: € 1,000,000 • Registration at the Lisbon Commercial Registry, No. 51 Mod. 99999924/T – 01/14
- It is also worth noting the exit of the Republic of Malta.
In addition, note should be taken of the publication of the FATF Statement on the Russian Federation, dated June 17, 2022, the full content of which can be consulted at http://www.fatf-gafi.org/publications/fatf-general/documents/ukraine-june-2022.html.
II. COMPARATIVE FRAMEWORK WITH COMMUNICATIONS ISSUED BY THE FATF IN MARCH 2022
HIGH-RISK JURISDICTIONS SUBJECT TO A CALL FOR ACTION | JURISDICTIONS UNDER INCREASED MONITORING JURISDICTIONS SUBJECT TO THE APPLICATION OF COUNTERMEASURES | JURISDICTIONS SUBJECT TO SPECIAL RISK ASSESSMENT ASSOCIATED WITH THEM JURISDICTIONS SUBJECT TO A MONITORING PROCESS | JURISDICTIONS THAT EXITED THE MONITORING PROCESS
PLENARY MEETING 14-17 JUNE 2022
Democratic People's Republic of Korea (North Korea) | Barbados, Burkina Faso, United Arab Emirates, Gibraltar, Cayman Islands, Jamaica, Kingdom of Cambodia, Hashemite Kingdom of Jordan, Kingdom of Morocco, Republic of Albania, Syrian Arab Republic, Republic of the Philippines, Republic of Haiti, Republic of Yemen, Islamic Republic of Pakistan, Republic of Mali, Republic of Nicaragua, Republic of Panama, Republic of Senegal, Republic of South Sudan, Republic of Turkey, Republic of Uganda, Union of Myanmar | Republic of Malta Islamic Republic of Iran | -- | --
PLENARY MEETING 2-4 MARCH 2022
Democratic People's Republic of Korea (North Korea) | Barbados, Burkina Faso, United Arab Emirates, Cayman Islands, Jamaica, Kingdom of Cambodia, Hashemite Kingdom of Jordan, Kingdom of Morocco, Republic of Albania, Syrian Arab Republic, Republic of the Philippines, Republic of Haiti, Republic of Yemen, Islamic Republic of Pakistan, Republic of Mali, Republic of Malta, Republic of Nicaragua, Republic of Panama, Republic of Senegal, Republic of South Sudan, Republic of Turkey, Republic of Uganda, Union of Myanmar | Republic of Zimbabwe Islamic Republic of Iran | -- | --
Mod. 99999924/T – 01/14
III. PROCEDURES AND MEASURES TO BE ADOPTED BY INSTITUTIONS
Considering the content of the documents produced by the FATF and within the scope of the duty to disseminate information to which supervisory authorities are bound (Article 120 of Law No. 83/2017, of August 18 - "Law No. 83/2017"), Banco de Portugal informs the following regarding business relationships, occasional transactions, and operations carried out with persons, entities, and centers of collective interest without legal personality¹ residing or established in the jurisdictions identified below:
a. Considering the existence of a very high risk of money laundering, terrorist financing, and proliferation of weapons of mass destruction, it is determined, under the terms and for the purposes of Article 99(1)(b) of Law No. 83/2017, the adoption of countermeasures, proportionate to those risks, regarding the DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA (NORTH KOREA) and the ISLAMIC REPUBLIC OF IRAN, which must in any case include the countermeasures identified in Article 99(3)(f) to (h) and (k) of the aforementioned Law No. 83/2017.
b. Enhanced identification and due diligence measures shall continue to be adopted, in accordance with Article 36(2) and Article 37(3)(b) of the aforementioned Law No. 83/2017, and all business relationships, occasional transactions, and operations involving the DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA (NORTH KOREA) or the ISLAMIC REPUBLIC OF IRAN shall be examined with special care, necessarily including the measures specified in the High-Risk Jurisdictions Subject to a Call For Action.
c. Regarding business relationships, occasional transactions, and operations involving jurisdictions subject to the monitoring process, or other third countries of high risk included in Delegated Regulation (EU) 2016/1675 of the Commission, of July 14, 2016, in its currently valid version², enhanced measures deemed proportionate to the specifically identified risk shall be adopted, without prejudice to the above, under the provisions of Article 36(2), Article 37(1), and Article 37(3)(b), all of the aforementioned Law No. 83/2017.
Supplementary information on the conclusions of the FATF plenary meeting can be obtained on the website www.fatf-gafi.org.
¹ Including their representatives and beneficial owners.
² The consolidated version of Delegated Regulation (EU) 2016/1675 can be consulted at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02016R1675-20220313, although this does not dispense with consulting the binding versions published in the Official Journal of the European Union.
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Source: Banco de Portugal — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works