Introduction: In a recent public statement, the Financial Action Task Force (FATF) addressed high-risk jurisdictions and those under increased monitoring for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) deficiencies. This press release provides insights into the FATF’s latest actions and its impact on international financial services.
Detailed Analysis: The FATF, an inter-governmental body established in 1989, plays a crucial role in setting global standards and promoting effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and related threats to the international financial system. It consists of member jurisdictions whose ministers are responsible for its governance.
In its recent public statement titled ‘High-Risk Jurisdictions subject to a Call for Action’ dated October 27, 2023, the FATF called on its members and other jurisdictions to refer to the statements on high-risk jurisdictions adopted in February 2020 and October 2022. This call is significant as it emphasizes the need for vigilance and action in addressing strategic AML/CFT deficiencies.
The FATF had previously identified certain jurisdictions as having strategic deficiencies and had worked with them to develop action plans. These were labeled as “Jurisdictions under Increased Monitoring.” The list included countries like Barbados, Burkina Faso, Cameroon, and others. The FATF’s recent statement added Bulgaria to this list, highlighting the evolving nature of financial risks. In contrast, Albania, Cayman Islands, Jordan, and Panama were removed from the list based on decisions made at the October 27, 2023, FATF Plenary meeting.
Importantly, the FATF’s advice does not preclude regulated entities licensed, recognized, registered, or authorized by the International Financial Services Centres Authority (IFSCA) from engaging in legitimate trade and business transactions with the countries and jurisdictions mentioned in the monitoring lists.
For detailed information on the jurisdictions identified as high-risk and those under increased monitoring, the FATF has released documents that can be accessed online. These documents provide a comprehensive understanding of the strategic AML/CFT deficiencies in these jurisdictions and serve as valuable resources for those involved in international financial services.
Conclusion: The FATF’s ongoing efforts to combat money laundering and terrorist financing are critical in maintaining the integrity of the international financial system. The recent updates regarding high-risk jurisdictions and those under increased monitoring signify the importance of global cooperation and vigilance in addressing financial risks.
As the financial landscape continues to evolve, it is essential for financial institutions, regulatory authorities, and businesses operating within the purview of the IFSCA to stay informed about these developments and take necessary actions to ensure compliance with international AML and CFT standards. By staying up-to-date with the FATF’s actions and guidelines, stakeholders can contribute to a safer and more secure global financial environment.
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International Financial Services Centres Authority
PRESS RELEASE
Financial Action Task Force (FATF) High risk and other monitored jurisdictions – October 27, 2023
The Financial Action Task Force (FATF), vide public statement ‘High-Risk Jurisdictions subject to a Call for Action’ dated October 27, 2023, has called on its members and other jurisdictions to refer to the statement on these jurisdictions adopted in February 2020 and October 2022.
Further, FATF had earlier identified the following jurisdictions as having strategic deficiencies which have developed an action plan with the FATF to deal with them. These “Jurisdictions under Increased Monitoring” are: Barbados, Burkina Faso, Cameroon, Democratic Republic of Congo, Croatia, Gibraltar, Haiti, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkiye, Uganda, United Arab Emirates, Vietnam and Yemen. As per the public statement, Bulgaria has now been added to the list of Jurisdictions under Increased Monitoring while Albania, Cayman Islands, Jordan and Panama have been removed from this list based on the decision made at the October 27, 2023, FATF Plenary. Such advice does not preclude the regulated entities licensed/ recognized/ registered or authorized by IFSCA from legitimate trade and business transactions with the countries and jurisdictions mentioned here.
The FATF plenary releases documents titled “High-Risk jurisdictions subject to a Call for Action” and “Jurisdictions under Increased Monitoring” with respect to jurisdictions that have strategic AML/CFT deficiencies as part of the ongoing efforts to identify and work with jurisdictions with strategic Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) deficiencies.
The detailed information is available in the updated public statements and document released by FATF on October 27, 2023. The statements and document can be accessed at the following URL:
1. https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Increased-monitoring-october-2023.html
2. https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2023.html
About FATF
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and countermeasures and promotes the adoption and implementation of appropriate measures globally. The FATF’s decision making body, the FATF Plenary, meets three times a year and updates these statements, which may be noted.
Gandhinagar
November 01, 2023
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