FATF warns several jurisdictions not to miss further AML deadlines

Monday, 26 June 2023
The Financial Action Task Force’s (FATF) latest plenary meeting has noted that several jurisdictions have not yet met the agreed deadlines for tightening their anti-money laundering (AML) regulations in accordance with FATF's recommendations.
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The jurisdiction in questions are Barbados, Burkina Faso, Gibraltar, Jamaica, the Philippines, Senegal, South Sudan, Turkey and Uganda.

FATF has advised them to 'swiftly demonstrate significant progress' or, in some cases, risk the imposition of special measures. Such measures could include enhanced due-diligence on their business transactions with other jurisdictions.

Other conclusions reached at the plenary meeting included adding Croatia, Cameroon and Vietnam to FATF's list of jurisdictions that are subject to increased monitoring as they resolve any AML deficiencies identified.

The plenary meeting found that the Cayman Islands has substantially completed its reform action plan and warrants an on-site assessment to verify that the implementation of the AML/CFT reforms has begun and is being sustained.

FATF found that Luxembourg has reached a high level of technical compliance with its requirements and its AML regime is delivering good results; however, it recommends that the country focuses on strengthening enforcement in complex AML cases, as well as strengthening the risk-based supervision of its non-financial sector.

An on-site visit to Albania has been authorised, in response to the country dropping plans to establish a voluntary tax compliance programme.

The plenary meeting also examined various potential enhancements and revisions to FATF recommendations. FATF is discussing the possibility of enhancing Recommendations 4 and 38 to provide countries with stronger legal measures to freeze, seize and confiscate criminal property and property of corresponding value, including non-conviction based confiscation. It expects to complete these projects by October 2023. Consultation is also about to begin on potential revisions to Recommendation 8 and FATF's updated best practices paper on combatting the abuse of non-profit organisations.

An update on the implementation of the FATF recommendations on virtual assets and virtual asset service providers (VASPs) is due to be published soon. FATF will also shortly publish a report urging countries to swiftly implement its existing recommendations on virtual assets and VASPs, including the travel rule.

Sources

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