The global FATF (Financial Action Task Force) have released reports about their scalding of the following jurisdictions for supposed ‘strategic and systematic anti-money laundering (AML) deficiencies’ in their legislation:
Trinidad & Tobago.
Pakistan is most at risk of counter-measures out of everyone on the list; the country has only addressed 6 items of the 25 terms it agreed to rectify in its June 2018 report to FATF. It has now been explicitly warned to complete its full action plan within the next 4 months by February 2020.
‘FATF strongly urges Pakistan to swiftly complete its full action plan otherwise, should significant and sustainable progress not be made across the full range of its action plan by the next plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdictions to advise their financial institutions to give special attention to business relations and transactions with Pakistan.’
Warnings to the other grey-listed jurisdictions were put less urgently. The Bahamas was told it should continue to work on implementing its action plan to increase the identification, tracing and freezing or restraining of assets and to present cases linked with foreign offences and stand-alone money laundering cases.’
As well as demonstrating that authorities are looking into and prosecuting all types of money laundering, including:
Stand-alone money laundering cases.
Cases involving proceeds of foreign offences, including foreign tax crimes.
Complex money laundering cases.
Trinidad & Tobago and Panama and were both asked to make adjustments to their technical requirements and beneficial ownership reporting framework.
Although not on the grey list Brazil was threatened with being a 6th addition to the above list and appears to have made significant progress to avoid being so. Back in 2016, the FATF announced that it had rather large concerns regarding Brazil’s continual failure to rectify deficiencies identified dating back to 2010.
In June this year, the FATF even suggested kicking Brazil out from the organisation for omission to cooperate however has withdrawn the threat after the country enacted two new laws for identifying and freezing illicitly obtained assets. A case has also been brought to the attention of the FATF regarding a judge from Brazil’s Supreme Court who issued an injunction to stop the use of financial intelligence assisting in criminal investigations which obviously will hinder the police forces power in Brazil significantly.
FATF also announced intensified due-diligence measures against Iran and North Korea, with the threat of fully enforced counter-measures against Iran if it does not meet its targets by February 2020.
Three new jurisdictions were added to FATF’s list of those subject to monitoring, making the list be comprised of the following countries:
Both Russia and Turkey also received favourable new assessments.