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Financial Action Task Force Publishes Updated List of Deficient Jurisdictions

On February 27, the Financial Action Task Force (FATF), which is an inter-governmental body established to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system, published an updated list of jurisdictions that pose a risk to the international financial system.

The following two jurisdictions have been determined to be jurisdictions that FATF members and other jurisdictions should apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing risks:

  • Democratic People’s Republic of Korea (North Korea)

  • Islamic Republic of Iran

The following three jurisdictions, which have previously been determined to have strategic anti-money laundering and terrorism financing deficiencies have still not made sufficient progress in addressing identified deficiencies, or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. The three jurisdictions are:

  • People’s Democratic Republic of Algeria

  • Republic of Ecuador

  • Republic of the Union of Myanmar

Details of the specific requirements relating to each country are set forth in the FATF release available here.

For more information on the FATF member jurisdictions and FATF initiatives, click here.

©2019 Katten Muchin Rosenman LLP


About this Author

Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...