The Financial Action Task Force (FATF) conducted their first Plenary meeting of the new year in Paris on February 20-22. The FATF is a global inter-governmental “policy-making body” with objectives 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.
Four major strategic initiatives were accomplished during this global meeting, including:
- Combating the financing of terrorism – this remains a top priority for the FATF. Al Qaeda, ISIL, and other terrorist organizations continue to have a significant impact in the region where they are active. FATF aims to be at the forefront of responding to these emerging threats through innovation and cooperation to deny terrorists funds and prevent them from accessing and using the international financial system to their benefit. The FATF continues to identify areas where jurisdictions are not taking targeted, impactful, and disruptive action against terrorist financing to protect the global financial system from being accessed by terrorist financiers.
The release of a public statementon its current actions concerning the following countries:
Democratic People’s Republic of Korea (DPRK)
The FATF remains concerned by DPRK’s failure to address significant anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies and the serious concerns they pose to the international financial system. In addition to continuing enhanced scrutiny of business relationships and transactions with the DPRK, the FATF calls on its members to apply effective counter-measures to protect their financial sectors from money laundering, financing of terrorism, and weapons of mass destruction proliferation financing.
The FATF has welcomed Iran’s political commitment to address its strategic AML/CFT deficiencies. In August 2018, Iran enacted amendments to its Counter-Terrorist Financing Act and in January 2019, enacted amendments to its Anti-Money Laundering Act. Both bills have passed Parliament but are not yet in full force. The FATF recognizes the progress of these legislative efforts.
- Democratic People’s Republic of Korea (DPRK)