Financial Action Task Force on Higher Risk Countries

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Financial Action Task Force on Higher Risk Countries

At its recent plenary meeting in Valencia, the Financial Action Task Force issued a public statement on high-risk and non-cooperative jurisdictions:

In relation to the Democratic People’s Republic of Korea the FATF continues to call on both its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the DPRK.

In June 2016 the FATF welcomed 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. In light of Iran’s demonstration of its political commitment and the relevant steps it has taken in line with its Action Plan, the FATF has decided to continue the suspension of counter-measures. However, pending implementation of the Action Plan, the FATF remains concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system

The FATF, therefore, calls 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. The FATF continues to urge Iran to fully address its AML/CFT deficiencies, in particular those related to terrorist financing

The FATF also issued a list of seven other monitored jurisdictions which are working with the FATF to address deficiencies in their national AML/CFT systems.

FATF public statements of this type relate to country risk; they influence third-country policy acts adopted EU Commission pursuant article 9(2) of the 4th Anti-Money Laundering Directive