EXPLANATORY MEMORANDUM FATF List
The Financial Action Task Force (FATF) list of High Risk and Non-Cooperative Jurisdictions
- As you may be aware, the FATF continuously works towards identifying countries/jurisdictions that have significant weaknesses in their Anti Money Laundering (AML) and Countering Financing of Terrorism (CFT) regimes. This is done by a review process whereby jurisdictions with AML/CFT deficiencies that present a risk to the international financial system are identified and closely monitored. These jurisdictions are assessed against the FATF Recommendations.
- As such, FATF publishes two ‘Statements’ at the end of each Plenary meeting in February, June and October which contains a list of jurisdictions with strategic deficiencies[1]. These lists are known as the Jurisdictions under Increased Monitoring[2] and High-Risk Jurisdictions subject to a Call for Action[3].
- As noted in the AML/CFT Guidelines for the Financial Sector [4], Financial Institutions (“FI’s”) are to identify high risk jurisdictions such as those that do not comply with or insufficiently with FATF Recommendations in relation to AML/CFT. This is so that additional or enhanced due diligence measures can be applied for categories of customers, business relationships or transactions with such higher risk jurisdictions.
- Therefore, to assist FI’s in this regard, please refer to the following website which has the latest FATF list of High Risk and Non – Cooperative Jurisdictions:
Jurisdictions under Increased Monitoring
[1] https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/More-on-high-risk-and-non-cooperative-jurisdictions.html
[2] Referred to externally as the Grey List
[3] Referred to externally as the Black List
[4] April 2010
High Risk Jurisdictions subject to Call for Action
5.The notification in this explanatory memorandum seeks to advise FI’s of AML/CFT concerns regarding systems of other countries. The abovementioned list will also be made available on our website[5] in due time and will be updated regularly when a new list is made available.
Fa’afetai