FATF P u b lic S ta te m e n t - 16 Fe b ru a ry 2 0 12
Paris, 16 February 2012 - The Financial Act ion Task Force ( FATF) is t he global st andard set t ing body for ant i- m oney laundering and com bat ing t he financing of t errorism ( AML/ CFT) . I n order t o prot ect t he int ernat ional financial syst em from m oney laundering and financing of t errorism ( ML/ FT) risks and t o encourage great er com pliance w it h t he AML/ CFT st andards, t he FATF ident ified j urisdict ions t hat have st rat egic deficiencies and w orks w it h t hem t o address t hose deficiencies t hat pose a risk t o t he int ernat ional financial syst em .
Ju r isdict ion s su bj e ct t o a FATF ca ll on it s m e m be r s a n d ot h e r j u r isdict ion s t o a pply cou n t e r - m e a su r e s t o pr ot e ct t h e in t e r n a t ion a l fin a n cia l syst e m fr om t h e on - goin g a n d su bst a n t ia l m on e y la u n de r in g a n d t e r r or ist fin a n cin g ( M L/ TF) r isk s e m a n a t in g fr om t h e j u r isdict ion s* .
I ran
Dem ocrat ic People's Republic of Korea ( DPRK)
Ju r isdict ion s w it h st r a t e gic AM L/ CFT de ficie n cie s t h a t h a ve n ot m a de su fficie n t pr ogr e ss in a ddr e ssin g t h e de ficie n cie s or h a ve n ot com m it t e d t o a n a ct ion pla n de ve lope d w it h t h e FATF t o a ddr e ss t h e de ficie n cie s* * . Th e FATF ca lls on it s m e m be r s t o con side r t h e r isk s a r isin g fr om t h e de ficie n cie s a ssocia t e d w it h e a ch j u r isdict ion , a s de scr ibe d be low .
Cuba* *
Bolivia Et hiopia Ghana I ndonesia Kenya Myanm ar Nigeria Pakist an
São Tom é and Príncipe Sri Lanka
Syria Tanzania Thailand Turkey
* The FATF has previously issued Public St at em ent s calling for count er - m easures on I ran and DPRK. Those St at em ent s are updat ed below .
* * Cuba has not engaged w it h t he FATF in t he process.
While t he FATF published t he revised FATF Recom m endat ions: “ I nt ernat ional St andards on
Com bat ing Money Laundering and t he Financing of Terrorism & Proliferat ion” on 16 February 2012, t he FATF has review ed t he ident ified j urisdict ions based on t he FATF 40+ 9 Recom m endat ions of 2003. Therefore, references t o specific Recom m endat ions or Special Recom m endat ions ( e.g. “ R.1” , “ SR.I I ” , et c.) in t his docum ent refer t o t he FATF 40+ 9 Recom m endat ions of 2003.
Ira n
The FATF rem ains part icularly and except ionally concerned about I ran’s failure t o address t he risk of t errorist financing and t he serious t hreat t his poses t o t he int egrit y of t he int ernat ional financial syst em , despit e I ran’s previous engagem ent w it h t he FATF.
t o give special at t ent ion t o business relat ionships and t ransact ions w it h I ran, including I ranian com panies and financial inst it ut ions. I n addit ion t o enhanced scrut iny, t he FATF reaffirm s it s 25 February 2009 call on it s m em bers and urges all j urisdict ions t o apply effect ive count er - m easures t o prot ect t heir financial sect ors from m oney laundering and financing of t errorism ( ML/ FT) risks em anat ing from I ran. FATF cont inues t o urge j urisdict ions t o prot ect against correspondent
relat ionships being used t o bypass or evade count er - m easures and risk m it igat ion pract ices and t o t ake int o account ML/ FT risks w hen considering request s by I ranian financial inst it ut ions t o open branches and subsidiaries in t heir j urisdict ion. Due t o t he cont inuing t errorist financing t hreat em anat ing from I ran, j urisdict ions should consider t he st eps already t aken and possible addit ional safeguards or st rengt hen exist ing ones.
The FATF urges I ran t o im m ediat ely and m eaningfully address it s AML/ CFT deficiencies, in part icular by crim inalising t errorist financing and effect ively im plem ent ing suspicious t ransact ion report ing ( STR) requirem ent s. I f I ran fails t o t ake concret e st eps t o im prove it s CFT regim e, t he FATF w ill consider calling on it s m em bers and urging all j urisdict ions t o st rengt hen count er - m easures in June 2012.
D e m o cra tic Pe o p le 's Re p u blic o f Ko re a ( D PRK)
The FATF rem ains concerned by t he DPRK’s failure t o address t he significant deficiencies in it s ant i-m oney laundering and coi-m bat ing t he financing of t errorisi-m ( AML/ CFT) regii-m e and t he serious t hreat t his poses t o t he int egrit y of t he int ernat ional financial syst em . The FATF urges t he DPRK t o
im m ediat ely and m eaningfully address it s AML/ CFT deficiencies.
The FATF reaffirm s it s 25 February 2011 call on it s m em bers and urges all j urisdict ions t o advise t heir financial inst it ut ions t o give special at t ent ion t o business relat ionships and t ransact ions w it h t he DPRK, including DPRK com panies and financial inst it ut ions. I n addit ion t o enhanced scrut iny, t he FATF furt her calls on it s m em bers and urges all j urisdict ions t o apply effect ive count er - m easures t o prot ect t heir financial sect ors from m oney laundering and financing of t errorism ( ML/ FT) risks em anat ing from t he DPRK. Jurisdict ions should also prot ect against correspondent relat ionships being used t o bypass or evade count er - m easures and risk m it igat ion pract ices, and t ake int o account ML/ FT risks w hen considering request s by DPRK financial inst it ut ions t o open branches and subsidiaries in t heir j urisdict ion.
The FATF acknow ledges t he lat est out reach from DPRK t o FATF and rem ains prepared t o engage direct ly in assist ing t he DPRK t o address it s AML/ CFT deficiencies.
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Cu ba
Cuba has not com m it t ed t o t he AML/ CFT int ernat ional st andards, nor has it const ruct ively direct ly engaged w it h t he FATF. At t he sam e t im e, Cuba at t ended a GAFI SUD plenary as a guest and prepared an inform al docum ent on it s AML/ CFT regim e. The FATF has ident ified Cuba as having st rat egic AML/ CFT deficiencies t hat pose a risk t o t he int ernat ional financial syst em . The FATF urges Cuba t o develop an
AML/ CFT regim e in line w it h int ernat ional st andards, and encourages Cuba t o est ablish a const ruct ive and direct dialogue w it h t he FATF and is ready t o w ork w it h t he Cuban aut horit ies t o t his end.
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Bo livia
Bolivia has t aken st eps t ow ards im proving it s AML/ CFT regim e, including enact ing CFT legislat ion and regulat ions. Despit e Bolivia’s high- level polit ical com m it m ent t o w ork w it h t he FATF and GAFI SUD t o address it s st rat egic AML/ CFT deficiencies, Bolivia has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Bolivia should w ork on addressing t hese deficiencies, including by: ( 1) ensuring adequat e crim inalisat ion of m oney laundering
( Recom m endat ion 1) ; ( 2) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; ( 3) est ablishing and im plem ent ing an adequat e legal fram ew ork for ident ifying and freezing t errorist asset s ( Special Recom m endat ion I I I ) ; and ( 4) est ablishing a fully operat ional and effect ive Financial I nt elligence Unit ( Recom m endat ion 26) . The FATF encourages Bolivia t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Eth io p ia
im plem ent ing effect ive, proport ionat e and dissuasive sanct ions in order t o deal w it h nat ural or legal persons t hat do not com ply w it h t he nat ional AML/ CFT requirem ent s ( Recom m endat ion 17) . The FATF encourages Et hiopia t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Gh a n a
Ghana has t aken st eps t ow ards im proving it s AML/ CFT regim e, including by rat ifying t he UN
Convent ion on Transnat ional Organised Crim e and issuing CDD guidelines. Despit e Ghana’s high- level polit ical com m it m ent t o w ork w it h t he FATF and GI ABA t o address it s st rat egic AML/ CFT deficiencies, Ghana has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic
AML/ CFT deficiencies rem ain. Ghana should w ork on im plem ent ing it s act ion plan t o address t hese deficiencies, including by: ( 1) adequat ely crim inalising m oney laundering and t errorist financing ( Recom m endat ion 1 and Special Recom m endat ion I I ) ; ( 2) est ablishing and im plem ent ing adequat e m easures for t he confiscat ion of funds relat ed t o m oney laundering ( Recom m endat ion 3) ; ( 3)
est ablishing a fully operat ional and effect ively funct ioning Financial I nt elligence Unit ( Recom m endat ion 26) ; and ( 4) est ablishing and im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) . The FATF encourages Ghana t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
In d o n e s ia
I ndonesia has t aken significant st eps t ow ards im proving it s AML/ CFT regim e, including by enact ing AML legislat ion in 2010 and developing draft com prehensive CFT legislat ion. Despit e I ndonesia’s high-level polit ical com m it m ent t o w ork w it h t he FATF and APG t o address it s st rat egic AML/ CFT
deficiencies, I ndonesia has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. I ndonesia should w ork on im plem ent ing it s act ion plan t o address t hese deficiencies, including by: ( 1) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; ( 2) est ablishing and im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) ; and ( 3) am ending and im plem ent ing law s or ot her inst rum ent s t o fully im plem ent t he 1999 I nt ernat ional Convent ion for t he Suppression of Financing of Terrorism ( Special Recom m endat ion I ) . The FATF encourages I ndonesia t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Ke n ya
Despit e Kenya’s high- level polit ical com m it m ent t o w ork w it h t he FATF and ESAAMLG t o address it s st rat egic AML/ CFT deficiencies, Kenya has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Kenya should w ork on addressing t hese deficiencies, including by: ( 1) adequat ely crim inalising m oney laundering and t errorist financing ( Recom m endat ion 1 and Special Recom m endat ion I I ) ; ( 2) ensuring a fully operat ional and effect ively funct ioning Financial I nt elligence Unit ( Recom m endat ion 26) ; ( 3) est ablishing and im plem ent ing an adequat e legal fram ew ork for ident ifying and freezing t errorist asset s ( Special Recom m endat ion I I I ) ; and ( 4) im plem ent ing effect ive, proport ionat e and dissuasive sanct ions in order t o deal w it h nat ural or legal persons t hat do not com ply w it h t he nat ional AML/ CFT requirem ent s ( Recom m endat ion 17) . The FATF w elcom es t he adopt ion of t he ESAAMLG m ut ual evaluat ion report and w ill w ork w it h Kenya in light of t he furt her deficiencies ident ified in t he report . The FATF encourages Kenya t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan, including by im plem ent ing t he AML legislat ion and set t ing up it s FI U.
Mya n m a r
Despit e Myanm ar’s high- level polit ical com m it m ent t o w ork w it h t he FATF and APG t o address it s st rat egic AML/ CFT deficiencies, Myanm ar has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Myanm ar should w ork on addressing t hese deficiencies, including by: ( 1) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; ( 2) est ablishing and im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) ; ( 3) furt her st rengt hening t he ext radit ion fram ew ork in relat ion t o t errorist financing ( Recom m endat ion 35 and Special Recom m endat ion I ) ; ( 4) ensuring a fully operat ional and effect ively funct ioning Financial I nt elligence Unit ( Recom m endat ion 26) ; ( 5)
enhancing financial t ransparency ( Recom m endat ion 4) ; and ( 6) st rengt hening cust om er due diligence m easures ( Recom m endat ion 5) . The FATF encourages Myanm ar t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
N ige ria
furt her engagem ent w it h Nigeria is needed t o clarify w het her t hese deficiencies have been addressed, including: ( 1) adequat ely crim inalising m oney laundering and t errorist financing ( Recom m endat ion 1 and Special Recom m endat ion I I ) ; and ( 2) im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) . The FATF encourages Nigeria t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Pa kis ta n
Pakist an has t aken significant st eps t ow ards im proving it s AML/ CFT regim e, including by enhancing t he capacit y of it s FI U, approving an AML/ CFT st rat egy, and by ensuring t raining is provided t o relevant st akeholders. Despit e Pakist an’s high- level polit ical com m it m ent t o w ork w it h t he FATF and APG t o address it s st rat egic AML/ CFT deficiencies, Pakist an has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain AML/ CFT deficiencies rem ain. Specifically, Pakist an needs t o enact legislat ion t o ensure t hat it m eet s t he FATF st andards regarding t he t errorist financing offence ( SR I I ) and t he abilit y t o ident ify, freeze, and confiscat e t errorist asset s ( Special Recom m endat ion I I I ) . The FATF encourages Pakist an t o address t he rem aining deficiencies and cont inue t o im plem ent it s act ion plan, including by dem onst rat ing effect ive regulat ion of m oney service providers and im plem ent ing effect ive cont rols for cross- border cash t ransact ions ( Special Recom m endat ion VI and Special Recom m endat ion I X) .
S ã o To m é a n d Prín cip e
Despit e São Tom é and Príncipe’s high- level polit ical com m it m ent t o w ork w it h t he FATF and GI ABA t o address it s st rat egic AML/ CFT deficiencies, São Tom é and Príncipe has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic deficiencies rem ain. São Tom é and Príncipe should w ork on addressing t hese deficiencies, including by: ( 1) adequat ely crim inalising m oney laundering and t errorist financing ( Recom m endat ion 1 and Special Recom m endat ion I I ) ; ( 2) est ablishing a fully operat ional and effect ively funct ioning Financial I nt elligence Unit ( Recom m endat ion 26) ; ( 3) ensuring t hat financial inst it ut ions and DNFBPs are subj ect t o adequat e AML/ CFT regulat ion and supervision ( Recom m endat ions 23, 24 and 29) ; and ( 4) im plem ent ing effect ive, proport ionat e and dissuasive sanct ions in order t o deal w it h nat ural or legal persons t hat do not com ply w it h t he nat ional AML/ CFT requirem ent s ( Recom m endat ion 17) . The FATF encourages São Tom é and Príncipe t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
S ri La n ka
Despit e Sri Lanka’s high- level polit ical com m it m ent t o w ork w it h t he FATF and APG t o address it s st rat egic AML/ CFT deficiencies, Sri Lanka has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Sri Lanka should w ork on addressing t hese deficiencies, including by: ( 1) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; and ( 2) est ablishing and im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) . The FATF encourages Sri Lanka t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan, including by cont inuing t o w ork on it s AML/ CFT legislat ion.
S yria
Syria has t aken significant st eps t ow ards im proving it s AML/ CFT regim e, including by im proving t he legal arrangem ent s for freezing t errorist asset s. How ever, despit e Syria’s high- level polit ical
com m it m ent t o w ork w it h t he FATF and MENAFATF, furt her engagem ent w it h Syria is needed t o clarify w het her t he rem aining deficiencies have been addressed, including by: ( 1) im plem ent ing adequat e procedures for ident ifying and freezing t errorist asset s ( Special Recom m endat ion I I I ) ; ( 2) ensuring t hat financial inst it ut ions are aw are of and com ply w it h t heir obligat ions t o file suspicious t ransact ion report s in relat ion t o ML and FT ( Recom m endat ion 13 and Special Recom m endat ion I V) ; and ( 3) ensuring t hat appropriat e law s and procedures are in place t o provide m ut ual legal assist ance ( Recom m endat ions 36 - 38, Special Recom m endat ion V) . The FATF encourages Syria t o dem onst rat e t hat it s rem aining deficiencies have been addressed t o enable t he FATF t o properly evaluat e Syria’s progress.
Ta n za n ia
Tanzania has t aken st eps t ow ards im proving it s AML/ CFT regim e, including by t he passage of
am endm ent s t o t he Ant i- Money Laundering and Proceeds of Crim e Act and t he AML law for Zanzibar. How ever, despit e Tanzania’s high- level polit ical com m it m ent t o w ork w it h t he FATF and ESAAMLG t o address it s st rat egic AML/ CFT deficiencies, Tanzania has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Tanzania should w ork on
procedures t o ident ify and freeze t errorist asset s as w ell as im plem ent ing t he UNSCRs 1267 and 1373 t hrough law , regulat ions or ot her enforceable m eans ( Special Recom m endat ion I I I ) ; ( 4) est ablishing effect ive CDD m easures ( Recom m endat ion 5) ; ( 5) est ablishing adequat e record - keeping requirem ent s ( Recom m endat ion 10) ; ( 6) est ablishing a fully operat ional and effect ively funct ioning Financial
I nt elligence Unit ( Recom m endat ion 26) ; and ( 7) designat ing com pet ent aut horit ies t o ensure com pliance w it h AML/ CFT requirem ent s ( Recom m endat ion 23) . The FATF encourages Tanzania t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Th a ila n d
Despit e Thailand’s high- level polit ical com m it m ent t o w ork w it h t he FATF and APG t o address it s st rat egic AML/ CFT deficiencies, Thailand has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain, alt hough Thailand has faced ext ernal difficult ies from 2009 t o 2011 w hich significant ly im pact ed t he legislat ive process for t he necessary law s and regulat ions. Thailand has t aken st eps t ow ards im proving it s AML/ CFT regim e, including by subst ant ially com plet ing an AML/ CFT risk assessm ent for it s financial sect or. Thailand should w ork on im plem ent ing it s act ion plan t o address t he rem aining deficiencies, including by: ( 1) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; ( 2) est ablishing and im plem ent ing adequat e procedures t o ident ify and freeze t errorist asset s ( Special Recom m endat ion I I I ) ; and ( 3) furt her st rengt hening AML/ CFT supervision ( Recom m endat ion 23) . The FATF encourages Thailand t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
Tu rke y
Turkey has t aken st eps t ow ards im proving it s AML/ CFT regim e, including by subm it t ing CFT legislat ion t o Parliam ent . Despit e Turkey’s high- level polit ical com m it m ent t o w ork w it h t he FATF t o address it s st rat egic AML/ CFT deficiencies, Turkey has not m ade sufficient progress in im plem ent ing it s act ion plan, and cert ain st rat egic AML/ CFT deficiencies rem ain. Turkey should w ork on addressing t hese deficiencies, including by: ( 1) adequat ely crim inalising t errorist financing ( Special Recom m endat ion I I ) ; and ( 2) im plem ent ing an adequat e legal fram ew ork for ident ifying and freezing t errorist asset s ( Special Recom m endat ion I I I ) . The FATF encourages Turkey t o address it s rem aining deficiencies and cont inue t he process of im plem ent ing it s act ion plan.
