FinCEN Issues Advisory on AML/CFT Deficiencies List
Commentary by Christian Larson
FinCEN issued an Advisory to financial institutions on recent updates to the Financial Action Task Force ("FATF") list of jurisdictions with strategic AML and combating the financing of terrorism ("AML/CFT") deficiencies. FinCEN stated that changes to the FATF list may affect U.S. financial institutions' risk-based due diligence obligations concerning the affected jurisdictions.
The FATF's "High-Risk Jurisdictions Subject to a Call for Action," published on February 21, 2020 calls for (i) enhanced due diligence and countermeasures with respect to the Democratic People's Republic of Korea ("DPRK") and (ii) enhanced due diligence and renewed countermeasures with respect to Iran.
FATF's "Jurisdictions under Increased Monitoring," also published on February 21 adds to the list Albania, Barbados, Burma (Myanmar), Jamaica, Nicaragua, Mauritius, and Uganda; removes from the list Trinidad and Tobago; and maintains on the list The Bahamas, Botswana, Cambodia, Ghana, Iceland, Pakistan, Panama, Mongolia, Syria, Yemen, and Zimbabwe.
Commentary
As the FATF presses for the more effective implementation of international AML/CFT standards, the organization continues to identify countries it views as lagging behind their peers. Newly-added countries with the political will to make changes, and the willingness to engage the both the FATF and outside experts can be removed from the lists with relative ease. Where either that will or willingness is lacking, however, countries may remain on the deficiencies list for much longer than necessary.