FATF Public Statements – 23rd October 2020

The FIAU would like to bring to your attention the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' (previously known as ‘Public Statement’) and 'Jurisdictions under Increased Monitoring' (previously known as ‘Improving global AML/CFT compliance: on-going process’) documents issued by the FATF on 23 October 2020. A copy of these documents has been uploaded on the FIAU’s website under ‘Country Statements’.

The FATF classifies the jurisdictions included in these documents into different categories, in accordance with the deficiencies present in such jurisdictions and the level of commitment and progress made in addressing such deficiencies.

The categories are the following:

1. Jurisdictions with strategic deficiencies in their regime to counter money laundering, terrorist financing, and financing of proliferation that have failed to meaningfully address their AML/CFT deficiencies and are subject to a call for counter-measures (listed under 'High-Risk Jurisdictions subject to a Call for Action’);
2. Jurisdictions that have developed an action plan with the FATF and have made a high-level political commitment to address their AML/CFT deficiencies (listed in the 'Jurisdictions under Increased Monitoring'). This document also lists jurisdictions that are no longer subject to the FATF on-going global AML/CFT compliance process, where applicable.

Subject persons are required to implement the measures set out under Regulation 11 of the Prevention of Money Laundering and Funding of Terrorism Regulation S.L. 373.01 (“PMLFTR”) and under Chapter 8 of the FIAU Implementing Procedures Part I, which is legally binding upon all subject persons in terms of Regulation 17 of the PMLFTR.

‘High-Risk Jurisdictions subject to a Call for Action’

Due to the COVID-19 situation, the FATF decided on a general pause in the review process for the list of high-risk jurisdictions subject to a call for action. Therefore, subject persons should refer to the list of ‘High-Risk Jurisdictions subject to a Call for Action’ adopted in February 2020. While the statement may not necessarily reflect the most recent status in Iran and the Democratic People’s Republic of Korea’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect. Subject persons should refer to Regulation 11 (11) of the Prevention of Money Laundering and Funding of Terrorism Regulations and apply the enhanced due diligence measures therein.

'Jurisdictions under Increased Monitoring'

The FATF gave the option for jurisdictions publicly identified to not report at this meeting given their focus on addressing the impact of the COVID-19 pandemic. The following countries chose to report: Albania, Botswana, Cambodia, Ghana, Mauritius, Pakistan, and Zimbabwe. For these countries, updated statements are provided on the FIAU’s website and can be accessed through the following link https://fiaumalta.org/country-statements/. The following countries deferred their reporting: Barbados, Jamaica, Myanmar, Nicaragua, Panama and Uganda. The statements issued in February 2020 for these jurisdictions are applicable, but they may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime.

It is to be noted that Iceland and Mongolia are no longer subject to increased monitoring by the FATF.

With regards to the enhanced due diligence measures to be applied to the above-mentioned jurisdictions, subject persons should refer to Regulation 11(10) of the Prevention of Money Laundering and Funding of Terrorism Regulations.

For any additional information or support required please contact us on [email protected].

This article was originally published by the FIAU on 28th October 2020.