The Financial Intelligence Analysis Unit (FIAU) would like to bring to your attention that, together with the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' and 'Jurisdictions under Increased Monitoring' documents, on the 24th of February the FATF also issued a Statement on the Russian Federation. A copy of these documents has been uploaded on the FIAU’s website respectively under ‘Country Statements’ and ‘Third Party Publications’.
The FATF classifies the jurisdictions included in these first two documents into different categories, in accordance with the deficiencies present in such jurisdictions, and the level of commitment and progress made in addressing such shortcomings.
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’). This process is informally referred to as ‘’black listing’’;
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 process is informally referred to as “grey listing”. 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
Since February 2020, in light of the COVID-19 pandemic, the FATF has paused the review process for Iran and Democratic People’s Republic of North Korea (DPRK), given that they are already subject to the FATF’s call for countermeasures. Therefore, reference should be made to the statement adopted on 21 February 2020 on these jurisdictions. While the statement may not necessarily reflect the most recent status of Iran and the DPRK’s AML/CFT regimes, the FATF’s call to apply countermeasures on these high-risk jurisdictions remains in effect. In October 2022, the FATF added Myanmar to the list of jurisdictions subject to a call for action and it should be noted that the statement issued is still applicable. Subject persons should refer to Regulation 11(11) of the PMLFTR and apply the enhanced due diligence measures therein to the above-mentioned jurisdictions.
Jurisdictions under Increased Monitoring
The following countries had their progress reviewed by the FATF since October 2022: Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Gibraltar, Haiti, Jamaica, Jordan, Mali, Morocco, Myanmar, Panama, Philippines, Senegal, South Sudan, Türkiye, UAE, and Uganda. The Democratic Republic of the Congo, Mozambique, and Tanzania chose to defer reporting; thus, the statements issued in October 2022 are applicable, but it may not necessarily reflect the most recent status of the jurisdictions’ AML/CFT regimes. Following review, the FATF now also identifies Nigeria and South Africa.
With regards to the enhanced customer due diligence measures to be applied to the above-mentioned jurisdictions, subject persons should refer to Regulation 11(10) of the PMLFTR.
Jurisdictions no longer subject to increased monitoring
Cambodia and Morocco are no longer subject to increased monitoring.
FATF Statement on the Russian Federation
The FATF stated that the Russian Federation’s actions run counter to the FATF core principles whose aim is to promote security, safety, and the integrity of the global financial system. Russian Federation’s illegal invasion of Ukraine represents a gross violation of the commitment to international cooperation and mutual respect upon which FATF Members have agreed to implement and support the FATF Standards.
As a result, the FATF has decided to suspend the membership of the Russian Federation. Nonetheless, the Russian Federation remains accountable for its obligation to implement the FATF Standards and must continue to meet its financial obligations. The Russian Federation will remain a member of the Global Network as an active member of the Eurasian Group on Combating Money Laundering (EAG) and will retain its rights as an EAG member.
The FATF reminds all jurisdictions to remain vigilant on the international financial system’s threats arising from the Russian Federation’s illegal invasion of Ukraine. All jurisdictions are advised to remain alert to possible emerging risks from the circumvention of measures taken in order to protect the international financial system, and to take the necessary measures to mitigate the same.
If any further information is required, you may contact the FIAU.
