FATF Updated List Includes Pakistan, Removes Iraq and Vanuatu
With all that we have to do each day as AML professionals, sometimes advisories and updates get lost in the shuffle. Here's one you may have missed:
On September 21, 2018, FinCEN issued an advisory referencing the June 29, 2018, Financial Action Task Force (FATF) publication which updated its list of jurisdictions with anti-money laundering and combatting the financing of terrorism (AML/CFT) deficiencies. Financial institutions (FIs) should consider these changes when reviewing their overall BSA/AML programs and risk-based policies, procedures, and practices.
As you know, the FATF is charged with monitoring jurisdictions for compliance to their global AML/CTF standards, and reporting countries with strategic deficiencies.
What has changed from the FATF list of jurisdictions with AML/CFT deficiencies? What, if any, countries should your financial institution add to your list of areas of concern?
Iraq and Vanuatu, previously included on the FATF deficiency list, have been removed. According to the FATF, these two countries have made significant progress in improving their AML/CFT programs and have established the legal and regulatory framework to meet the commitments regarding the deficiencies that the FATF previously identified.
Financial institutions should still conduct their own analysis of these countries to determine if they are no longer areas of concern for the risk profile of each particular institution. Political unrest, human rights violations, and/or other financial crimes may be reasons to keep a jurisdiction on your internal list of monitoring even if AML/CFT progress has been made.