Financial Action Task Force (FATF) and AML/CFT Compliance

As part of its ongoing review of global compliance with AML/CFT standards, the Financial Action Task Force (FATF) identifies jurisdictions with deficiencies in this area. A number of jurisdictions have made a high-level political commitment to work with the FATF to address the identified deficiencies.

Which countries have committed to working with the FATF? How have they improved their AML/CFT regimes, and what have the FATF identified as areas for improvement?

 

Ethiopia

Date of commitment: February 2017

Steps taken to improve AML/CFT regime

  • Developed a risk-based supervision manual for the designated non-financial businesses and professions (DNFBPs) and commenced risk-based supervision for higher-risk DNFBPs and non-profit organisations (NPOs)

Further areas for improvement

  • Fully implementing the results of its national risk assessment
  • Fully integrating DNFBPs into its AML/CFT regime
  • Ensuring confiscation of proceeds of crime
  • Implementing targeted financial sanctions

 

Pakistan

Date of commitment: June 2018

Pakistan’s AML/CFT action plan includes the following objectives:

  • Demonstrating that authorities and law enforcement agencies are cooperating and taking action to effectively combat ML/TF risks
  • Demonstrating that remedial actions and sanctions are applied in cases of AML/CFT violations

 

Serbia

Date of commitment: February 2018

Steps taken to improve AML/CFT regime

  • Bringing into force amendments to its AML/CFT law
  • Establishing a central registry
  • Amending its Law on the Freezing of Assets
  • Updating its National Risk Assessment (NRA)
  • Commencing risk-based supervision

Further areas for improvement

  • Communicating the results of the updated NRA to key stakeholders
  • Demonstrating the timely and effective imposition of sanctions
  • Implementing new requirements related to Customer Due Diligence (CDD), politically exposed persons and wire transfers
  • Addressing issues related to beneficial ownership

 

Sri Lanka

Date of commitment: November 2017

Steps taken to improve AML/CFT regime

  • Issuing DNFBP sector-specific AML/CFT guidelines
  • Enacting amendments to its Trust Ordinance to establish a central register of trusts
  • Undertaking outreach to its higher risk DNFBP sectors

Further areas for improvement

  • Enacting amendments to the Mutual Assistance in Criminal Matters Act (MACMA) to ensure that mutual legal assistance may be provided on the basis of reciprocity
  • Enhancing risk-based supervision of high-risk DNFBPs, including through enforcement actions and sanctions as appropriate
  • Addressing issues related to beneficial ownership

 

Trinidad and Tobago

Date of commitment: November 2017

Steps taken to improve AML/CFT regime

  • Enacting amendments to legislation improving measures for international cooperation on tax offences
  • Advancing legislation on a number of criminal justice reforms

Further areas for improvement

  • Adopting and implementing the relevant measures to further enhance international cooperation
  • Addressing issues related to transparency and beneficial ownership
  • Completing the legislative efforts to enhance the processing of ML charges before the courts
  • Taking measures to enhance tracing and confiscation of criminal proceeds
  • Prioritising and prosecuting TF cases when they arise

 

Tunisia

Date of commitment: November 2017

Steps taken to improve AML/CFT regime

  • Adopting AML/CFT supervisory manuals and initiating risk-based supervision for the securities and insurance sectors
  • Issuing the by-laws for the DNFBPs

Further areas for improvement

  • Fully integrating the DNFBPs into its AML/CFT regime
  • Strengthening the system of sanctions for violations of transparency obligations
  • Increasing efficiency with regard to suspicious transaction report processing
  • Demonstrating that its terrorism-related TFS regime is fully functional
  • Establishing and implementing targeted financial sanctions

 

Syria

Date of commitment: February 2010

Steps taken to improve AML/CFT regime

  • Criminalising terrorist financing
  • Establishing procedures for freezing terrorist assets

 

Yemen

Date of commitment: February 2010

Steps taken to improve AML/CFT regime

  • Criminalising money laundering and terrorist financing
  • Establishing procedures to identify and freeze terrorist assets
  • Improving its customer due diligence and suspicious transaction reporting requirements
  • Establishing a fully operational and effectively functioning financial intelligence unit

While the FATF determined that both Yemen and Syria have completed their respective agreed action plans, due to the security situation, the FATF has been unable to conduct on-site visits to confirm whether the process of implementing the required reforms and actions has begun and is being sustained. The FATF will continue to monitor the situation, and conduct on-site visits in Yemen and Syria at the earliest possible date.

Nyman Gibson Miralis are experts in transnational money laundering investigations. Contact us if you require assistance.