June 2016 FATF Statement

June 2016 FATF Statement

 

On 24 June 2016, the Financial Action Task Force (FATF), of which Singapore is a member, issued an updated Public Statement that highlighted the strategic deficiencies in the anti-money laundering/combating the financing of terrorism (AML/CFT) regimes:-

 

  • Democratic People’s Republic of Korea (DPRK), which has not shown sufficient commitment to address their serious AML/CFT deficiencies. The FATF has also noted the proliferation financing risks arising from the DPRK and called upon countries to comply with the relevant United Nations Security Council Resolutions (e.g. UNSCR 2270). DPRK is subject to a FATF call on countries to apply counter-measures and to give special attention to business relationships and transactions with the DPRK, including DPRK companies, financial institutions, and those acting on their behalf.
  • Iran has adopted and committed to an Action Plan to address its strategic AML/CFT deficiencies, and the FATF has decided to suspend counter-measures for twelve months to monitor Iran’s progress. The FATF remains concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system. Enhanced due diligence should continue to be applied on business relationships and transactions with natural and legal persons from Iran.

Details of the FATF Statement can be found at:

 

http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/public-statement-june-2016.html

 

Financial institutions are advised to accord due consideration to the above FATF Statement and take the appropriate action(s) and level of due-diligence measures, as specified in the MAS AML/CFT Notices and regulations. Non-financial institutions that are subjected to AML/CFT requirements in Singapore are similarly advised to note the updated Statement and take appropriate measures in accordance with your respective AML/CFT obligations.

 

Separately, the FATF has issued an updated statement on its on-going process to improve global AML/CFT compliance.  This statement provides information on a list of jurisdictions that have committed to action plans to address and strengthen their respective AML/CFT deficiencies, and would assist financial institutions and relevant non-financial institutions in your risk assessment and mitigation.  The second FATF statement can be found at:

 

http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-june-2016.html

 

Last Modified on 26/11/2016