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Financial Services Law Insights and Observations

FinCEN issues advisory updating FATF-identified jurisdictions with AML/CFT deficiencies

Financial Crimes FinCEN Anti-Money Laundering Combating the Financing of Terrorism

Financial Crimes

On February 9, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to financial institutions based on November 3, 2017 updates to the Financial Action Task Force’s (FATF) list of jurisdictions identified as having “strategic deficiencies” in their anti-money laundering/combating the financing of terrorism (AML/CFT) regimes. FinCEN urges financial institutions to consider this list when reviewing due diligence obligations and risk-based policies, procedures, and practices. 

The current jurisdictions (as further described in the Improving Global AML/CFT Compliance: On-going Process) that have AML/CFT deficiencies for which the jurisdictions have developed action plans are: Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen. Notably, Uganda has been removed from this list for making “significant technical progress in improving its AML/CFT regime and . . . establish[ing] the legal and regulatory framework to meet the commitments in its action plan.” However, Sri Lanka, Trinidad and Tobago, and Tunisia were added to the list due to the ineffective implementation of their AML/CFT frameworks. The Democratic People’s Republic of Korea and Iran remain the two jurisdictions subject to countermeasures and enhanced due diligence due to AML/CFT deficiencies.

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