On 23 June 2017, 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) has not shown sufficient commitment to address its serious AML/CFT deficiencies.  The FATF has serious concerns with the threat posed by DPRK’s illicit activities related to the proliferation of weapons of mass destruction and its financing. DPRK is subject to the FATF’s call on countries to apply counter-measures and give special attention to business relationships and transactions with the DPRK, including the DPRK companies, financial institutions, and those natural and legal persons acting on its behalf.  Countries and financial institutions are called to apply effective counter‑measures (including enhanced due diligence and scrutiny), targeted financial sanctions, and other measures in accordance with the applicable United Nations Security Council Resolutions.
• In June 2016, Iran adopted and committed to an Action Plan to address its strategic AML/CFT deficiencies. In response the FATF suspended counter-measures for 12 months to monitor Iran’s progress. In light of Iran’s demonstration of its political commitment and the relevant steps it has taken in line with its action plan, the FATF has decided to continue the suspension of counter-measures and monitor Iran’s progress. However, 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-2017.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 required in the respective MAS AML/CFT Notices and guidance. 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.

The FATF has also 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-2017.html