Regulatory Alerts2018-01-01
Decision No. (2) of 2018 on High-Risk and Non-Compliant Countries Regarding AML/CFT Standards
The Financial Follow-Up Unit of the State of Palestine issued Decision No. (2018/2) on July 10, 2018, designating North Korea as a prohibited high-risk jurisdiction and listing Iran, Pakistan, Serbia, Ethiopia, Sri Lanka, Syria, Trinidad and Tobago, Yemen, and Tunisia as high-risk countries subject to specific anti-money laundering and counter-terrorist financing measures. The directive mandates all financial institutions operating in Palestine to implement enhanced and continuous due diligence protocols, including transaction verification and source-of-funds identification, when engaging with these jurisdictions. Effective immediately upon issuance, the decision updates previous regulatory tables and aligns Palestinian financial oversight with Financial Action Task Force (FATF) public statements and recommendations.
Financial Follow-Up Unit
State of Palestine
Decision No. (2018/2)
Issued by the Financial Follow-Up Unit
Dated 10/July/2018
Regarding High-Risk and/or Non-Compliant Countries Regarding AML/CFT Standards
Based on the provisions of Law Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments, particularly Paragraph (16) of Article (20),
And pursuant to Decision No. (8j/4/2016) of the National Committee for Combating Money Laundering and Financing of Terrorism issued on 01/12/2016, regarding delegating the Financial Follow-Up Unit to publish the list of high-risk countries issued periodically by the Financial Action Task Force (FATF),
And in addition to Decision No. (6j/3/2016) of the National Committee for Combating Money Laundering and Financing of Terrorism issued on 01/08/2017 regarding the prohibition of financial dealings with the Democratic People's Republic of Korea,
And pursuant to public interest requirements, it has been decided as follows:
First
The following countries are considered high-risk as they are non-compliant or partially compliant with AML/CFT standards:
(a) Democratic People's Republic of Korea / North Korea (dealings with it are prohibited based on the National Committee for Combating Money Laundering and Financing of Terrorism decision).
(b) Iran, Pakistan, Serbia, Ethiopia, Sri Lanka, Syria, Trinidad and Tobago, Yemen, Tunisia (those countries are handled under specific measures).
Second
All financial institutions operating in Palestine must take the measures specified in the table attached to this decision when dealing with the countries mentioned in the First section of this decision.
Third
All competent authorities must implement the provisions of this decision, and it shall take effect from the date of its issuance.
A. Wael Lavi
Director of the Financial Follow-Up Unit
- Attachment: Measures to be taken when dealing with high-risk countries.
State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps
Attachment to Decision No. (2018/2) issued by the Financial Follow-Up Unit on 10/07/2018
| Country Name | Measures to be Taken |
|---|---|
| Democratic People's Republic of Korea (North Korea) | All financial institutions are prohibited from conducting financial dealings with North Korea. |
| Iran | Continue taking enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to it, whether for natural or legal persons, and consider correspondent banking relationships with financial institutions operating and licensed in Iran, in accordance with the provisions of Law Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments, the instructions issued thereunder, and FATF Recommendation No. (19). |
| Serbia | Given that Serbia has made a high political commitment to address strategic deficiencies, all financial institutions must take continuous due diligence measures regarding business relationships with those countries, including financial transactions executed from or to them, to verify the purposes of the transactions and identify the source of funds, in accordance with Law Decree No. (20) of 2015 on Combating Money Laundering and Financing of Terrorism and its amendments and the instructions issued thereunder. |
| Pakistan | |
| Syria | |
| Sri Lanka | |
| Ethiopia | |
| Yemen | |
| Tunisia | |
| Trinidad and Tobago |
- This table is an update to the table attached to Decision No. (2018/1) regarding High-Risk and/or Non-Compliant Countries Regarding AML/CFT Standards.
State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps
7/10/2018
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On the basis of the results of the review by the International Co-operation Review Group (ICRG), the FATF identifies jurisdictions with strategic AML/CFT deficiencies in the following public documents that are issued three times a year: [FATF Public Statement](call for action) and [Improving Global AML/CFT Compliance: On-going Process](other monitored jurisdictions).
Related publications >
High-risk and other monitored jurisdictions:
| Call for action | Other monitored jurisdictions | |
|---|---|---|
| Democratic People's Republic of Korea (DPRK) | • | |
| Ethiopia | • | |
| Iran | • | |
| Pakistan | • | |
| Serbia | • | |
| Sri Lanka | • | |
| Syria | • | |
| Trinidad and Tobago | • | |
| Tunisia | • | |
| Yemen | • |
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