HKMA Update on FATF Statements Regarding High-Risk Jurisdictions and Plenary Outcomes

Our Ref.: B10/14C
B1/15C
5 March 2024
The Chief Executive
All Authorized Institutions
Dear Sir/Madam,
Statements issued by the Financial Action Task Force I am writing to update you on the statements published by the Financial Action Task Force (FATF) identifying jurisdictions that have strategic deficiencies in their anti￾money laundering and counter-financing of terrorism (AML/CFT) and counter proliferation financing regimes, and also draw your attention to a number of outcomes from the FATF Plenary meeting held between 21 and 23 February 2024. Statements on “High-Risk Jurisdictions subject to a Call for Action” and “Jurisdictions under Increased Monitoring” (1) Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures Iran and Democratic People’s Republic of Korea (DPRK) Authorized Institutions (AIs) should continue to refer to the HKMA circular on “Statements issued by the Financial Action Task Force” dated 11 March 2020, in particular, applying the enhanced due diligence measures and other countermeasures in relation to Iran and DPRK. (2) Jurisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction Myanmar The FATF determined that Myanmar will remain on the list of countries subject to a call for action until its full action plan is completed. AIs should therefore

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  continue to apply enhanced due diligence measures1 , proportionate to the risks involved, to business relationships and transactions with natural and legal persons from Myanmar. The statement can be found at: https://www.fatf￾gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for￾action-february-2024.html. (3) Jurisdictions under Increased Monitoring The FATF has issued an updated statement on “Jurisdictions under Increased Monitoring”. The statement can be found at: https://www.fatf￾gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Increased￾monitoring-february-2024.html. FATF Plenary meeting, 21-23 February 2024 The outcomes of the FATF Plenary meeting were published on the FATF website and can be found at: https://www.fatf-gafi.org/content/fatf￾gafi/en/publications/Fatfgeneral/outcomes-fatf-plenary-february-2024.html. In particular, the FATF has published a public consultation on Recommendation 16 on payment transparency 2 with the aim to ensure that the FATF Standards remain technology-neutral and follow the principle of “same activity, same risk, same rules”. The HKMA will invite the banking sector, through the industry associations, to respond to the consultation. Yours faithfully, Carmen Chu Executive Director (Enforcement and AML) 1 See paragraph 4.15.1 of Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Authorized Institutions) revised in May 2023. 2 Public Consultation on Recommendation 16 on Payment Transparency issued on 26 February 2024