FCC RegUpdate

On December 4, 2023, HM Treasury issued an Advisory Notice, updating high-risk third countries due to significant deficiencies in their Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Counter-Proliferation Financing (CPF) frameworks.

To know more, click here https://www.fcctimes.com/2023/12/04/hm-treasury-alert-tightened-aml-measures-for-high-risk-countries-key-updates/?utm_source=RZOLUTWebsite&utm_medium=FCCRegUpdate14Dec

Effective from December 5, 2023, as per the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2023, this aligns with recent Financial Action Task Force (FATF) updates, reflecting jurisdictions under increased monitoring and those subject to a call for action.

This update adds countries with specific enhancements:

  • Bulgaria: Enhancing technical compliance, risk-based supervision, accurate ownership data, automated STR prioritization, improved investigations, and targeted financial sanctions frameworks.
  • Cameroon: Improving international cooperation, bank supervision, beneficial ownership access, and risk-based approaches, especially for NGOs.
  • Croatia: Regulating VASPs, enforcing sanctions, strengthening preventive measures, boosting FIU resources, and establishing a national framework for UN TFS.
  • Nigeria: Disseminating risk assessments, aligning strategies, improving international cooperation, AML/CFT supervision, timely beneficial ownership access, and efforts against terrorist financing.
  • South Africa: Addressing deficiencies with improved international cooperation, enhanced supervision, and proactive outreach to at-risk NPOs.
  • Vietnam: Improving risk understanding, addressing compliance deficiencies through enhanced international cooperation, effective supervision, and prioritized financial investigations.

Four countries were removed during this FATF session:

  • Albania: Strengthening its AML/CFT regime, addressing FATF deficiencies through analyses, formalizing the economy, and reducing ML/TF risks.
  • Cayman Islands: Fortifying its regime with effective sanctions, accurate beneficial ownership, and targeted money laundering prosecutions.
  • Jordan: Improving its AML/CFT regime, addressing strategic deficiencies with risk assessments, updated ownership information, and enhanced money laundering investigations and prosecutions.
  • Panama: Addressing ML/TF risks by targeting unlicensed remitters, verifying beneficial ownership, and using FIU products.

Updated list of high-risk third countries:

  1. Barbados
  2. Bulgaria
  3. Burkina Faso
  4. Cameroon
  5. Croatia
  6. DPRK
  7. Democratic Republic of the Congo
  8. Gibraltar
  9. Haiti
  10. Iran
  11. Jamaica
  12. Mali
  13. Mozambique
  14. Myanmar
  15. Nigeria
  16. Philippines
  17. Senegal
  18. South Africa
  19. South Sudan
  20. Syria
  21. Tanzania
  22. Turkey
  23. Uganda
  24. United Arab Emirates
  25. Vietnam
  26. Yemen