BaFin Circular 03/2011 (GW) – FATF Updates on Iran, North Korea and AML/CFT Compliance

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On 25 February 2011, during its Plenary Meeting in Paris from 23 to 25 February 2011, the Financial Action Task Force on Money Laundering ( FATF ) released an updated public statement and an updated information report, in line with the procedure agreed in the Plenary Meeting in October 2010 (see BaFin Circular 10/2010 ( GW ) dated 12 November 2010).

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20.04.2011

I. FATF public statement dated 25 February 2011 regarding Iran and the Democratic People's Republic of Korea (North Korea)

The FATF 's updated statement of 25 February 2011 ( Annex 1 ) concerns countries for which substantial deficiencies regarding measures to combat money laundering and terrorist financing have been identified:

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 ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction

From now on Iran and the Democratic People's Republic of Korea (North Korea) fall within this category. Regarding Iran the FATF 's public statement dated 22 October 2010 and BaFin

Circular 10/2010 ( GW ) continue to apply. Please refer to BaFin Circular 2/2010 ( GW ) for information on the measures that must continue to be taken. Regarding the Democratic People's Republic of Korea (North Korea) now the same measures as regarding Iran apply. Also in this respect I refer to BaFin

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

2)Category 2: Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of October 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with the jurisdiction.

At present there is no country attached to this category.

II. FATF information report dated 25 February 2011 regarding countries under supervision

In the course of the ongoing review of countries conducted by the FATF and the FATF -style regional bodies ( FSRBs ), certain countries have continued to show deficiencies with regard to the FATF’s core & key recommendations. For details, please refer to the translated FATF information report dated 25 February 2011 ( Annex 2 ), which shows no changes with respect to the listed countries in comparison to the preceding information report dated 22 October 2010 (cf. BaFin

Circular 10/2010 ). However, those countries where FATF was not able to confirm sufficient progress within the given period but does not plan to take further steps yet are attached separately at the end of the list. Although there is no direct obligation to take action and no requirement to apply enhanced due diligence regarding these countries, the situation in these countries must be taken into consideration adequately when assessing the risks of these countries or persons from these countries in the context of the prevention of money laundering and terrorist financing.

Additional information

FATF Public Statement

Improving Global AML/CFT Compliance: update on-going process

Circular 10/2010 ( GW )

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