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Financial Action Task Force (FATF) - Advisory Warning No. 1 of 2008
On 28 February, 2008, the Financial Action Task Force (FATF) issued a public statement in which it expressed concern about deficiencies in the anti-money laundering and countering the financing of terrorism (AML/CFT) regimes of Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe and the northern part of Cyprus.
The public statement was issued following the work carried out by the International Cooperation Review Group in relation to these jurisdictions.
With respect to Uzbekistan, the FATF expressed concern that a series of presidential decrees in that country has effectively repealed the jurisdiction’s AML/CFT regime and thus generates a money laundering and financing of terrorism vulnerability in the international financial system.
In the case of Iran, while recognizing the commitment made by that country to improve its AML/CFT regime, the FATF noted that there remain risks arising from deficiencies in the country’s AML/CFT regime.
In relation to Pakistan, the FATF noted the country’s recent progress in adopting AML/CFT legislation, but advised that there are remaining deficiencies in the country’s AML/CFT regime which constitute money laundering and financing of terrorism vulnerability in the international financial system.
While welcoming the steps taken by Turkmenistan to fully address concerns associated with the country’s AML/CFT regime, the FATF expressed concern that there were still deficiencies in the country’s AML/CFT regime.
The FATF similarly recognized the steps taken by Sao Tome and Principe to address AML/CFT concerns, but expressed concern that deficiencies remain in the country’s AML/CFT regime.
The northern part of Cyprus was also cited by the FATF as having deficiencies in its AML/CFT regime which created money laundering and financing of terrorism vulnerability in the international financial system.
Accordingly, the FSC advises the general public, including all regulated and other persons who are required to comply with the requirements of the Anti-money Laundering Regulations, 2008 and the Anti-money Laundering and Terrorist Financing Code of Practice, 2008, to note the concerns expressed by the FATF with respect to the above jurisdictions and consider the money laundering and/or terrorist financing risks associated therewith and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving any of the six jurisdictions that have been identified above.
SIGNED:
Robert A. Mathavious
Managing Director/CEO
British Virgin Islands Financial Services Commission
Pasea Estate, Tortola, British Virgin Islands
Telephone: (284) 494-4190
Facsimile: (284) 494-5016
E-mail: [email protected]
Website:
