Guidance to Financial Institutions Based on the Financial Action Task Force Statement on Anti-Money Laundering and Counter-Terrorist Financing Risks Posed by Iran, Uzbekistan, Turkmenistan, Pakistan, and São Tomé and Príncipe

Advisory
FIN-2009-A004
Issued: July 10, 2009
Subject: Guidance to Financial Institutions Based on the Financial Action Task Force Statement on Anti-Money Laundering and Counter-Terrorist Financing Risks Posed by Iran, Uzbekistan, Turkmenistan, Pakistan, and São Tomé and Príncipe The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to inform banks and other financial institutions operating in the United States of the risks associated with deficiencies in the anti-money laundering (AML) and counter-terrorist financing (CFT) regimes of the following jurisdictions: Iran, Uzbekistan, Turkmenistan, Pakistan, and São Tomé and Príncipe. On June 26, 2009 the Financial Action Task Force (FATF) issued a statement concerning these jurisdictions that reiterates previous FATF concerns and calls for action on the
part of its members.
1
The FATF statement is copied below and can be found on the FATF website.
2
“IRAN
The FATF remains concerned by Iran’s failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The FATF remains particularly concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalizing terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements. The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the 1 The FATF is a 34 member inter-governmental policy-making body whose purpose is to establish international standards, and develop and promote policies, both at national and international levels, to combat money laundering and terrorist financing. See www.fatf-gafi.org. The United States is a member of the FATF. See also previous FATF statements of October 11, 2007 at www.fatf-gafi.org/dataoecd/1/2/39481684.pdf; February 28, 2008 at www.fatf-gafi.org/dataoecd/16/26/40181037.pdf; June 20, 2008 at www.fatf-gafi.org/dataoecd/50/1/40879782.pdf; October 16, 2008 at www.fatf-gafi.org/dataoecd/25/17/41508956.pdf; and February 25, 2009 at www.fatf￾gafi.org/dataoecd/18/28/42242615.pdf. 2 See www.fatf-gafi.org/document/15/0,3343,en_32250379_32236836_43193871_1_1_1_1,00.html.