Announcement for the persons under Art. 3, paragraphs 2 and 3 of the Law on Measures against Money Laundering concerning the jurisdictions with higher risk of money laundering and financing of terrorism

During the FATF plenary session (The Financial Action Task Force) in June 2013 in Oslo a new statement has been adopted and published on 21.06.2013 г concerning jurisdictions that are not applying enough measures for prevention of money laundering (ML) and financing of terrorism (FT) or jurisdictions to which counter-measures shall apply. The Statement identifies two groups of jurisdictions with significant risks:

 1. In its statement FATF calls again the countries to apply counter-measures toward Iran and North Korea because of the on-going and substantial ML and FT risk.

FATF remains particularly concerned about the failure of Iran to reduce the risks related to FT and the resulting serious threat for the integrity of the international financial system, despite Iran’s previous engagement with the FATF and recent submission of information.

  FATF reaffirms its call to the countries and appeals to all jurisdictions to advise their financial institutions for giving special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, FATF reaffirms its 25.02.2009 call on its members and urges all jurisdictions to apply effective counter-measures for protection of their financial sectors from ML and FT risks, emanating from Iran. FATF continues to urge jurisdictions to apply preventive measures to the correspondent relationships when they are used for bypassing or evading the counter-measures and risk mitigation practices and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. Due to the continuing terrorist financing threats, emanating from Iran, the jurisdictions should consider the steps already taken and possible additional safeguards or strengthen existing ones.

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. If Iran fails to take concrete steps for improvement of its CFT regime, FATF will consider calling on all jurisdictions to strengthen the counter-measures in October 2013.

FID-SANS stresses the necessity of strict application of the measures, underlined in Regulation 267/2012 and its last amendments against Iran (Regulation 522/2013 from 06.06.2013), and the necessity of notifying the Directorate on the cases specified in the Regulation as well as in all cases of suspicion concerning persons and operations connected with Iran.

 Together with the above mentioned measures against Iran, FATF expresses again its concern about the insufficient measures for counteraction to ML and FT applied by the Democratic People’s Republic of Korea (North Korea). Since February 2013, the DPRK has continued to engage directly with FATF and has engaged further with the Asian-Pacific Group (APG) for counteraction to ML. FATF urges DPRK to enhance its engagement with these bodies to agree with FATF on an action plan to address its AML/CFT deficiencies.

FATF remains concerned by the DPRK’s failure to address the deficiencies in its AML and CFT regime and the serious threat this poses to the integrity of the international financial system. FATF urges DPRK to immediately and meaningfully address its AML/CFT deficiencies.

FATF reaffirms its 25.02.2011 call on all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with DPRK, including DPRK companies and financial institutions. In addition to enhanced scrutiny, FATF further calls on its members and urges all jurisdictions to apply effective counter-measures to protect their own financial sectors from ML and FT risks emanating from DPRK.  Besides, FATF urges all jurisdictions to apply counter-measures against DPRK concerning correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices and to take into account ML/FT risks when considering requests by DPRK financial institutions to open branches and subsidiaries in these jurisdictions.

In connection with the FATF statement FID-SANS emphasizes on the necessity of applying the Council Decision 2013/183/CFSP of 22 April 2013 and Regulation (EU) 696/2013 of 22 July 2013 amending Regulation (EU) 329/2007 on restrictive measures against the Democratic People’s Republic of Korea.

 2. In the scope of the monitoring process and the jurisdiction encouragement for full application of the international AML/CFT standards, FATF identifies the following jurisdictions that have not made sufficient progress in addressing the strategic deficiencies in their AML/CFT system or have not committed to an action plan developed with the FATF to address the deficiencies: Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Pakistan, Sao Tome and Principe, Syria, Tanzania, Turkey, Vietnam and Yemen.

FID-SANS stresses on the last amendments on the restrictive measures applied by the EU against Syria – Council Decision 2013/255/ CFSP  and Regulation (EU) 697/2013 amending Regulation (EU) 36/2012.

With regard to Ecuador FATF notes that the country has not made sufficient progress since being identified in the FATF Public Statement regarding countries with higher ML and FT risk. If Ecuador does not take significant actions to address the deficiencies in its AML/CFT regime by October 2013 FATF will call upon all jurisdictions to strengthen the counter-measures proportionate to the risks associated with Ecuador.

With regard to Nigeria which figures in the previous list of jurisdictions that have not made sufficient progress in addressing their strategic AML/CFT deficiencies FATF states that the country is no longer part of this list due to its significant progress in implementing its action plan agreed upon with the FATF.

In the frames of the monitoring process FATF continues its efforts for identifying jurisdictions with deficiencies in the system for prevention of ML and FT in encouraging actions for their overcoming.

In its second statement of 21.06.2013 (Improving Global AML/CFT Compliance: On-going Process) FATF identifies the jurisdictions that have deficiencies in their AML/CFT system and that implement action plans developed with FATF. The situation differs among the different jurisdictions with regard to the achieved progress and the written high-level political commitments provided by the jurisdictions in order to engage with the identified deficiencies are welcomed by the FATF. Among these jurisdictions are: Afghanistan, Albania, Angola, Argentina, Bangladesh, Cambodia, Cuba, Kuwait, Kyrgyzstan, Lao PDR, Mongolia, Morocco, Namibia, Nepal, Nicaragua, Nigeria, Sudan, Tajikistan and Zimbabwe.

FATF identifies the jurisdictions that have not made sufficient progress on their action plan in connection with deficiencies in their AML/CFT systemsAlgeria and Antigua and Barbuda. If these jurisdictions do not take sufficient steps to implement significant components of their action plan by October 2013 then the FATF will identify these jurisdictions as being out of compliance with their action plans and will take the additional step of calling upon its members to consider the risks arising from the deficiencies associated with these jurisdictions.

In its second statement FATF also welcomes the significant progress in the improving its AML/CFT regime made by Bolivia, Brunei Darussalam, the Philippines, Sri Lanka and Thailand which have established the necessary legal and regulatory framework to meet their commitments in their action plan regarding the strategic deficiencies that the FATF had identified in 2010 and 2011. The mentioned countries are therefore no longer subject to FATF’s monitoring process under its on-going global AML/CFT compliance process. FATF calls on the mentioned countries to continue to address the issues identified during their Mutual Evaluation Reports.

The FATF Statements are published in English and French on the following website address http://www.fatf-gafi.org, in section High-risk and non-cooperative jurisdictions.