The Financial Action Task Force (FATF) has issued its latest list of jurisdictions under increased monitoring. These jurisdictions must work actively to resolve their strategic deficiencies to counter ML/TF and proliferation financing (PF) within agreed timeframes. Some of the FATF’s suggestions to the ‘grey list’ countries are discussed below.
Albania must address its strategic deficiencies by ensuring that authorities have access to company beneficial ownership information, increasing the number of ML prosecutions, and confiscating the assets linked to professional money launderers. Jamaica should also ensure information sharing with competent authorities, increase risk-based ML investigations and prosecutions, etc. However, Albania, Jamaica and even Nicaragua should swiftly implement their action plans since their deadlines have now expired. Similarly, most of Uganda’s action plan deadlines have also expired or are about to expire. The country must thus address its deficiencies promptly.
Panama is in a similar situation, with all its timelines already expired. Myanmar and Cambodia have also made limited progress on their plans and all their deadlines have expired. Notably, the FATF has urged Panama, Myanmar and Cambodia to demonstrate significant progress on their action plans by June 2022 to avoid stringent measures. On a positive note, Pakistan has completed 26 of the 27 action items in its 2018 action plan. The country should complete the last remaining item by actively and consistently pursuing complex ML investigations and prosecutions.
Among other grey-listed jurisdictions, Barbados should apply risk-based supervision and ensure that ML investigations and prosecutions align with its risk profile, among other actions. Meanwhile, Burkina Faso should enhance its understanding of ML/TF risks, seek international cooperation, record comprehensive and updated beneficial ownership information, etc. The Cayman Islands should impose adequate and effective sanctions when beneficial ownership information is inaccurate or not up-to-date. They should also prosecute all types of ML cases as per their risk profile, among other actions.
On the other hand, Haiti should develop its ML/TF risk assessment process and share financial intelligence with foreign and domestic authorities. Jordan should also conduct ML/TF risk assessments of non-profit organisations (NPOs), legal persons and virtual assets and share them as necessary. Similarly, Mali should share the results of its National Risk Assessment with all relevant stakeholders and implement risk-based AML/CFT supervision. Morocco should also improve risk-based supervision and promptly share relevant information on ML cases.
The Philippines and Turkey should both increase their use of financial intelligence and conduction of ML/TF investigations. The UAE should similarly show an increase in the numbers of Suspicious Transaction Reports (STRs), ML investigations and prosecutions. Meanwhile, Senegal should ensure consistent understanding of ML/TF risks across relevant authorities through training and outreach and seek international cooperation, among other steps. South Sudan, on the other hand, should conduct a comprehensive review of its AML/CFT law and ensure that competent authorities are able to execute a risk-based approach to AML/CFT supervision for financial institutions.
In June 2014, the FATF noted that Syria and Yemen had significantly addressed their action plans at a technical level. However, due to security concerns, the FATF could not conduct on-site visits to confirm the status of the countries’ actions. The FATF has said that it will conduct on-site visits as soon as the situation permits them. Malta has also substantially completed its action plan and is ready for an on-site inspection. The FATF will conduct this visit as soon as possible upon monitoring the COVID-19 situation.
Notably, only one jurisdiction on the list – Zimbabwe – is no longer subject to increased monitoring by the FATF. Zimbabwe has a strong AML/CFT framework and it has adequately addressed any technical deficiencies to fulfill its action plan.
Source: FATF