FATF Updates List of Jurisdictions with Insufficient AML/CFT/CPF Regimes

FinCEN notified U.S. financial institutions that the Financial Action Task Force ("FATF") updated its list of jurisdictions with strategic deficiencies in their AML/CFT regimes.

Following an update to the list of jurisdictions in March 2022 (see previous coverage), the FATF provided separate country progress reports for: Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Haiti, Jamaica, Jordan, Mali, Malta, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Turkey and Uganda. The FATF noted that the United Arab Emirates chose to defer reporting to focus on its efforts to improve its AML/CFT regime.

Changes to the "Jurisdictions under Increased Monitoring" list include:

• adding Gibraltar to the list of jurisdictions under increased monitoring; and

• removing Malta from the same list.

FinCEN also confirmed that the FATF's list of "High-Risk Jurisdictions subject to a Call for Action" - which calls for enhanced due diligence and countermeasures with respect to the Democratic People's Republic of Korea and Iran - remains in effect. FinCEN also reminded U.S. financial institutions of their due diligence obligations with regard to correspondent accounts at foreign financial institutions.