HM Treasury today issues a Statement on Money Laundering controls in Overseas Jurisdictions
The notice constitutes advice issued by HM Treasury about risks posed by unsatisfactory money laundering controls in a number of jurisdictions.
The Money Laundering Regulations 2007 require firms to put in place policies, procedures or systems in order to prevent money laundering or terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in “any other situation which by its nature can present a higher risk of money laundering or terrorist financing”.
This advice is in two parts, A and B. This advice is especially relevant if you conduct any business with any of the jurisdictions referred to in Part A or Part B or businesses based in those jurisdictions.
This advice supersedes previous advice issued by HM Treasury in connection with deficiencies in these areas.
Part A
On 18th February 2010 the Financial Action Task Force (FATF) issued a public statement drawing attention to serious deficiencies in
- Iran,
- Angola, the Democratic People’s Republic of Korea (DPRK), Ecuador and Ethiopia
- Pakistan, Turkmenistan, and São Tomé and Príncipe.
The UK fully supports the work of the FATF on these matters and HM Treasury agrees with the FATF’s assessments.
IRAN
All UK businesses regulated under the Money Laundering Regulations 2007, whether financial institutions or other regulated persons should treat transactions associated with Iran as situations that by their nature can present a higher risk of money laundering or terrorist financing, and which therefore require increased scrutiny, enhanced due diligence, and ongoing monitoring, particularly in the case of correspondent relationships.
All other persons authorised by the Financial Services Authority should also take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.
ANGOLA, THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA (DPRK), ECUADOR AND ETHIOPIA
The attention of UK financial institutions and other persons regulated for money-laundering purposes is also drawn to the FATF statement in respect of Angola, the Democratic People’s Republic of Korea (DPRK), Ecuador and Ethiopia, and the risks that they present. They should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.
PAKISTAN, TURKMENISTAN, AND SÃO TOMÉ AND PRÍNCIPE
The FATF has also drawn attention to the continuing AML/CTF deficiencies in Pakistan, Turkmenistan, and São Tomé and Príncipe.
The attention of UK financial institutions and other persons regulated for money-laundering purposes is therefore drawn to the FATF statements in respect of those jurisdictions, and the risks that they continue to present. They should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.
Part B
In a separate statement on the ongoing process to improve global anti-money laundering and countering terrorist finance (AML/CTF) compliance the FATF has also drawn attention to deficiencies in the AML/CTF regimes in the following jurisdictions; Antigua and Barbuda, Azerbaijan, Bolivia, Greece, Indonesia, Kenya, Morocco, Myanmar, Nepal, Nigeria, Paraguay, Qatar, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Thailand, Turkey, Ukraine and Yemen.
The attention of UK financial institutions and other persons regulated for money-laundering purposes is drawn to the FATF statements in respect of each of those jurisdictions. They should take this advice into account in respect of their systems and controls to counter financial crime.
This FATF statement is available at: http://www.fatf-gafi.org/dataoecd/34/28/44636196.pdf