BaFin Circular 02/2013 (GW) Regarding FATF Public Statement on Iran, North Korea and Other Jurisdictions

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16.07.2013

I. FATF Public Statement of 21 June 2013 regarding Iran, the Democratic People's Republic of Korea (North Korea) and other countries

During its Plenary Meeting held in Oslo on 21 June 2013, the FATF released an updated Public Statement and an updated Information Report (see II).

The Statement issued by the FATF on 21 June 2013 ( Annex 1 ) concerns jurisdictions for which substantial deficiencies have been identified regarding measures to combat money laundering and terrorist financing.

1. Category 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 of 22 February 2013 and BaFin Circular 1/2013 ( GW ) continue to apply to both countries. Please refer to BaFin Circular 2/2010 ( GW ) for information on the measures that still have to be taken.

2. Category 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 aforementioned deficiencies associated with each jurisdiction.

This category now includes Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Pakistan, São Tomé and Príncipe, Syria, Tanzania, Turkey, Vietnam and Yemen.

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 the FATF . In addition, the results of any security and review measures taken in this respect are to be clearly documented for the internal audit function, the audit of annual financial statements and any special audits. These measures correspond to those specified in BaFin Circular 2/2010 ( GW ).

II. FATF Information Report of 21 June 2013 regarding countries under review

In the ongoing review of countries by the FATF and the FATF -style regional bodies ( FSRBs ), certain countries continue to have deficiencies with regard to the FATF's key recommendations. For details, please refer to the translated FATF Information Report of 21 June 2013 ( Annex 2 ). 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.

Additional information

Circular 02/2013 ( GW ) - Annex 1: FATF Public Statement

Circular 02/2013 ( GW ) - Annex 2: Improving Global AML

Circular 01/2013 ( GW )

Circular 2/2012 ( GW )

Circular 2/2010 ( GW )

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