RegAlert2017-04-05 | FinCEN Advisory - FIN-2017-A002Added · Updated
Advisory on the FATF-Identified Jurisdictions with AML/CFT Deficiencies
U.S. financial institutions are updated on the Financial Action Task Force's (FATF) revised lists of jurisdictions with strategic Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) deficiencies as of February 24, 2017. The advisory requires U.S. financial institutions to apply enhanced due diligence for correspondent accounts for foreign banks, specifically prohibiting opening or maintaining any correspondent accounts with foreign banks licensed by the Democratic People’s Republic of Korea (DPRK) or Iran. For the DPRK, institutions must continue to consult existing FinCEN and OFAC guidance and prevent indirect access to U.S. correspondent accounts, while for Iran, despite FATF's conditional suspension of countermeasures until June 2017, U.S. financial institutions must still comply with existing U.S. sanctions. Additionally, institutions must consider risks and comply with general due diligence obligations for Afghanistan, Bosnia and Herzegovina, Ethiopia, Iraq, Lao PDR, Syria, Uganda, Vanuatu, and Yemen, noting Ethiopia's addition to this list due to a lack of effective implementation of its AML/CFT framework.
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FIN-2017-A002 April 5, 2017
- The FATF (www.fatf-gafi.org) is a 37-member intergovernmental body that establishes international standards to
combat money laundering and counter the financing of terrorism and proliferation of weapons of mass destruction. The United States is a member of the FATF. - The FATF public identification of countries with strategic AML/CFT deficiencies is in response to the G-20
leaders’ call for the FATF to reinvigorate its process for assessing countries’ compliance with international AML/ CFT standards. The G-20 leaders have consistently called for the FATF to issue regular updates on jurisdictions with strategic deficiencies. Specifically within the FATF, the International Cooperation Review Group (ICRG) monitors and identifies countries with AML/CFT deficiencies. For more information on the ICRG procedures, please visit the FATF’s website – www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/ moreabouttheinternationalco-operationreviewgroupicrg.html. - 31 U.S.C. § 5318(h) and (i).
Advisory on the FATF-Identified Jurisdictions with AML/CFT Deficiencies On February 24, 2017, the Financial Action Task Force (FATF) updated its list of jurisdictions with strategic AML/CFT deficiencies. These changes may affect U.S. financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions. As part of the FATF’s listing and monitoring process to ensure compliance with its international Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards, the FATF identifies certain jurisdictions as having strategic deficiencies in their AML/CFT regimes.1
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Source: Financial Crimes Enforcement Network — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works