FinCEN Updates Jurisdictions on FATF AML/CFT Deficiencies List
Commentary by Jeff Ziesman
FinCEN updated its list of Financial Action Task Force ("FATF") identified jurisdictions found to have strategic AML/CFT deficiencies.
FATF, the intergovernmental body that establishes international standards for anti-money laundering, made the following changes to the "Jurisdictions under Increased Monitoring" list:
- Algeria, Angola, Côte d’Ivoire and Lebanon were added to the list due to deficiencies in their AML/CFT frameworks.
- Senegal was removed from the list after a determination that it strengthened its AML/CFT regime.
The countries that remain on the list are Bulgaria, Burkina Faso, Cameroon, Croatia, Democratic Republic of Congo, Mali, Mozambique, Namibia, Nigeria, Philippines, Senegal, South Africa, South Sudan, Tanzania, Vietnam and Yemen. Haiti, Kenya, Monaco, Syria and Venezuela chose to defer reporting.
FinCEN confirmed that the FATF's October 2024 statement, "High-Risk Jurisdictions Subject to a Call for Action," which called for enhanced due diligence and countermeasures with respect to Iran, the Democratic People's Republic of Korea and Burma, remains in effect (Burma is subject to the application of enhanced due diligence, but not countermeasures.)
Commentary
The Financial Action Task Force list of jurisdictions found to have strategic AML/CFT deficiencies is separate from those on the US Department of Treasury's OFAC Lists. Financial Institutions doing business in connection with these countries should have enhanced policies and procedures to account for such heightened risk.
FinCEN, FINRA and the SEC (and other AML regulators) expect US financial institutions to be familiar with these jurisdictions, and the institutions' risk-based policies and procedures should reflect that familiarity.