Regulatory Alerts2012-03-21 | Circular 2/2012 (GW)BaFin Circular 2/2012 on Updated FATF Standards and Money Laundering Prevention
BaFin issued Circular 2/2012 to align German financial institutions with the revised FATF standards and the newly enacted Act on Optimising the Prevention of Money Laundering. The circular mandates enhanced due diligence and organizational measures for transactions involving Iran, North Korea, and thirteen other jurisdictions with strategic AML/CFT deficiencies. It further establishes a list of equivalent third countries, introduces a reduced EUR 1,000 threshold for fund transfers outside existing business relationships, and clarifies politically exposed person identification requirements with a supervisory grace period until December 2012.
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