BaFin Circular 12/2011 (GW) on FATF's Updated AML/CFT Statement and Report for Iran, North Korea and Other Jurisdictions

StartseiteUeberschrift

Companies & Markets

Law & Regulation

Ad­min­is­tra­tive practice

Circulars

On 28 October 2011, during its Plenary Meeting held in Paris from 27 to 28 October 2011, the Financial Action Task Force on Money Laundering ( FATF ) released an updated public statement and an updated information report similar in format to the publications dated 24 June 2011 (see BaFin

Circular 10/2011 ( GW ) dated 28 July 2011).

Business sign: GW 1-GW 2001-2008/0003

09.12.2011

This translation is furnished for information purposes only.

The original German text is binding in all respects.

I. FATF public statement dated 28 October 2011 regarding Iran, the Democratic People's Republic of Korea (North Korea) and other countries

The FATF 's updated statement dated 28 October 2011 ( Annex 1 ) concerns jurisdictions for which substantial deficiencies have been identified regarding measures to prevent money laundering and terrorist financing.

1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing ( ML/TF ) risks emanating from the jurisdictions.

This category still includes Iran and the Democratic People's Republic of Korea (North Korea). The FATF 's public statement dated 24 June 2011 and BaFin

Circular 10/2011 ( GW ) continue to apply for both countries. Please refer to BaFin

Circular 2/2010 ( GW ) for information on the measures that still have to be taken.

2. Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

This category now includes Bolivia, Ethiopia, Kenya, Myanmar, Nigeria, Sao Tomé and Príncipe, Sri Lanka, Syria and Turkey (jurisdictions that have not made sufficient progress) as well as Cuba (jurisdictions that have not committed to an action plan).

Business relationships with these countries or with business partners who reside in these countries or transactions from or to these countries require enhanced due diligence and organisational requirements in order to combat the increased risks identified by FATF . Moreover, the results of the implemented security and review measures are to be reasonably documented for the internal audit function, the audit of annual financial statements and any special audits. These measures correspond with BaFin

Circular 2/2010 ( GW ).

II. FATF information report dated 28 October 2011 regarding countries under supervision

In the ongoing review of countries by the FATF and the FATF -style regional bodies ( FSRBs ), certain countries have continued to show deficiencies with regard to the FATF’s key recommendations.

For details, please refer to the translated FATF information report dated 28 October 2011 ( Annex 2 ). Those countries for which the FATF had not seen sufficient progress during the period it had specified, but for which it does not wish to take any further action at this time, are listed separately at the end.

Although there is no direct obligation to take action and no requirement to apply enhanced due diligence and organisational requirements appropriate for the increased risk with respect to these countries, the situation in these countries must be taken into consideration when assessing the risks of these countries or persons from these countries in the context of preventing money laundering and terrorist financing.

Argentina is a special case. Argentina is also mentioned in the Information Report, and the President again expressed his continued concern about the situation in Argentina in his report on the Plenary Meeting from 27 to 28 October 2011. In light of this, express reference is made to BaFin Circular 10/2010 dated 12 November 2010. With the risk having increased significantly, however, consideration should still be paid even at the present stage to applying enhanced due diligence to business relationships with Argentina, or with business partners who reside in Argentina, as well as to transactions from or to this country. The results of the implemented security and review measures are to be reasonably documented for the internal audit function, the audit of annual financial statements and any special audits.

Additional information

Circular 12/2011 ( GW ) - Annex 1: FATF Public Statement

Circular 12/2011 ( GW ) - Annex 2: Improving Global AML

Did you find this article helpful?

Feedback

Your feedback helps us to continuously improve the website and to keep it up to date. If you have any questions and would like us to contact you, please use our contact form.

Rating

helpful

less helpful

Do you have any further feedback?

Comment ( max. 1000 characters):

Mandatory field