The list of jurisdictions with deficiencies in strategic anti-money laundering and combatting financing of terrorism (AML/CFT) was updated Wednesday by federal law enforcement, action it said may affect U.S. financial institutions’ obligations and risk-based approaches.
The update also is intended to remind financial institutions of the status and obligations involving these jurisdictions, particularly the Democratic People’s Republic of Korea (DPRK) and Iran.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued the advisory to financial institutions regarding the Financial Action Task Force’s (FATF) updated list.
“As part of the FATF’s listing and monitoring process to ensure compliance with its international AML/CFT standards, the FATF identifies certain jurisdictions as having strategic deficiencies in their AML/CFT regimes,” the advisory states. “These jurisdictions are named in two documents: (1) the ‘FATF Public Statement,’ which identifies jurisdictions that are subject to the FATF’s call for countermeasures and/or are subject to enhanced due diligence (EDD) because of their strategic AML/CFT deficiencies; and (2) ‘Improving Global AML/CFT Compliance: On-going Process,’ which identifies jurisdictions that the FATF has determined to have strategic AML/CFT deficiencies.
FinCEN noted that on Oct. 19, FATF updated both documents with the concurrence of the United States. Financial institutions, it said, should consider the changes when reviewing their obligations and risk-based policies, procedures, and practices with respect to the DPRK and Iran.