Statements issued by the Financial Action Task Force

Our Ref.: B10/14C
B1/15C
13 July 2018
The Chief Executive
All Authorized Institutions
Dear Sir/Madam,
Statements issued by the Financial Action Task Force I am writing to inform you that on 29 June 2018 the Financial Action Task Force (FATF) published two updated statements identifying jurisdictions that may pose a risk to the international financial system and also to draw your attention to a number of outcomes from the FATF Plenary meeting held on 27-29 June 2018. FATF Public Statement The FATF has issued a public statement identifying jurisdictions that have strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) regimes. The statement can be found at: http://www.fatf￾gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/public￾statement-june-2018.html. (1) Jurisdiction subject to a FATF call on its members and other jurisdictions to apply counter-measures Democratic People’s Republic of Korea (DPRK) The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its AML/CFT regime and the threat posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction (WMD) and its financing. Authorized institutions (AIs) should give special attention to business relationships and transactions associated with the DPRK, including DPRK companies, financial institutions and those acting on their behalf, and subject them to increased scrutiny and enhanced due diligence. AIs should also terminate correspondent relationships with DPRK banks, where required by relevant United Nations Security Council Resolutions.

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  (2) Jurisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures Iran The FATF decided to continue the suspension of counter-measures and will decide upon appropriate and necessary actions in October 2018 depending on Iran’s progress in addressing all of the remaining items in its Action Plan. The FATF remains concerned with the terrorist financing risk emanating from Iran and the threat it poses to the international financial centre. AIs should therefore continue to apply enhanced due diligence, proportionate to the risks, to business relationships and transactions with natural and legal persons from Iran. Improving Global AML/CFT Compliance: On-going Process The FATF has also issued an updated statement on jurisdictions that have strategic AML/CFT deficiencies but have developed an action plan and provided a written high level political commitment to address the identified deficiencies. The statement can be found at: http://www.fatf-gafi.org/publications/high-riskandnon￾cooperativejurisdictions/documents/fatf-compliance-june-2018.html. Other Outcomes from the FATF Plenary, Paris, 27-29 June 2018 The FATF has published various outcomes of the Plenary held on 27-29 June 2018, which may be of reference to AIs. Further information can be found at:
  http://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-plenary￾june-2018.html. Yours faithfully, Carmen Chu Executive Director (Enforcement and AML)