Circular Letter No. CC/2020/00000054

Circular Letter No. CC/2020/00000054 Sent to: Credit Institutions, Payment Institutions, Electronic Money Institutions and Financial Companies. Mod. 40000375/T – 01/14 Subject: Disclosure of FATF communications (June 2020 plenary meeting)

COMMUNICATIONS ISSUED BY THE FATF

With the aim of protecting the international financial system from the risks associated with money laundering and terrorist financing, as well as fostering adequate compliance with AML/CFT standards, the FINANCIAL ACTION TASK FORCE (FATF) acts to identify jurisdictions that present strategic deficiencies in matters of money laundering and terrorist financing and to develop coordinated and decisive responses at the global level to combat these realities.

Following its plenary meeting on June 24, 2020, the FATF released the following documents:

a. HIGH-RISK JURISDICTIONS SUBJECT TO A CALL FOR ACTION (formerly known as Public Statement), dated June 30, 2020 Document that identifies jurisdictions subject to countermeasures and jurisdictions with strategic deficiencies in matters of preventing money laundering and terrorist financing that have not yet made sufficient progress in overcoming these deficiencies and/or have not agreed with the FATF on an action plan for this purpose. The full content of this document can be consulted at: http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-june-2020.html

b. JURISDICTIONS UNDER INCREASED MONITORING (formerly known as Improving Global AML/CFT Compliance: On-Going Process), dated June 30, 2020 Document that identifies jurisdictions with strategic deficiencies in matters of preventing money laundering and terrorist financing that have developed an action plan to overcome them, and are subject to a FATF monitoring process. The full content of this document can be consulted at: http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-june-2020.html

However, it should be clarified that in April of this year, in response to the impact generated by the pandemic caused by the new Coronavirus (SARS-CoV-2), also designated as COVID-19, the FATF opted to suspend its review processes aimed at compiling these two lists of jurisdictions – see communication of April 28: FATF extends its assessment and follow-up deadlines in response to COVID-19 –, having granted an additional deadline for the implementation of measures to countries with action plans in development.

Thus, and despite Iceland and Mongolia having requested the maintenance of their original schedule – a request to which the FATF acceded, and as a result of which it updated its declaration (only) with regard to these two countries – no changes were verified regarding the jurisdictions included in the lists

Mod. 40000375/T – 01/14 contained in the FATF communications of February 21, 2020¹, to which this body expressly refers.

In that measure, and without prejudice to the clarifications contained in the aforementioned documents, it is necessary to inform that the information and alerts disseminated under Circular Letter No. CC/2020/00000030 remain current and in force.

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Supplementary information on the conclusions of the FATF plenary meeting can be obtained on the website www.fatf-gafi.org.

1 HIGH-RISK JURISDICTIONS SUBJECT TO A CALL FOR ACTION, dated February 21, 2020 - http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-february-2020.html; JURISDICTIONS UNDER INCREASED MONITORING, dated February 21, 2020 - http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-february-2020.html