Based on the Financial Action Task Force (FATF) 2012 Recommendations, reporting institutions are required to apply enhanced due diligence measure to business relationships and transactions with customers from high-risk and non-cooperative jurisdictions.
Additionally, where the FATF makes a call on its members and other jurisdictions to apply counter measures on a high-risk and non-cooperative jurisdiction having strategic AML/CFT deficiencies, reporting institutions must apply the appropriate countermeasures to customers from such jurisdiction.
To this end, the FATF issues Public Statements three times a year highlighting jurisdictions that are identified as high-risk and non-cooperative jurisdictions as well as measures and steps to be taken in dealing with customers from such jurisdictions.
For ease of reference of reporting institutions, the relevant Public Statements are as follows:
1. FATF Public Statement – 24 June 2016
- The FATF reaffirmed its call on its members and other jurisdictions to apply countermeasures against the DPRK.
- In view of Iran’s adoption of, and high-level political commitment to, an Action Plan to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan, the FATF has suspended counter-measures against Iran for twelve months. The FATF, therefore, called on its members and urges all jurisdictions to continue to advise their financial institutions to apply enhanced due diligence to business relationships and transactions with natural and legal persons from Iran, consistent with FATF Recommendation 19.
2. FATF Public Statement – 19 February 2016
- The FATF reaffirmed its call on its members and other jurisdictions to apply countermeasures against Iran and the DPRK.
- Myanmar had been removed from the FATF Public Statement pursuant to recognition of improvements made to their AML/CFT regime.
3. The following public statements also reaffirmed FATF’s call on its members and other jurisdictions to apply countermeasures against Iran and the DPRK, and called on its members to consider risks arising from deficiencies associated with each jurisdiction listed in them: i. FATF Public Statement – 23 October 2015 ii. FATF Public Statement – 26 June 2015 iii. FATF Public Statement – 27 February 2015 iv. FATF Public Statement – 24 October 2014 v. FATF Public Statement – 27 June 2014 vi. FATF Public Statement – 14 February 2014
*Public statements issued prior to 2014 can be found on the FATF’s website at http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/?hf=10&b=0&s=desc(fatf_releasedate.
**The list of higher-risk countries is updated periodically and available on the FATF’s website at http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/.