FinCEN notified U.S. financial institutions that the Financial Action Task Force ("FATF") updated the list of jurisdictions with strategic deficiencies in combating anti-money laundering and countering the financing of terrorism ("AML/CFT"). Changes to the FATF list may affect U.S. financial institutions' due diligence obligations and approaches concerning the affected jurisdictions.
In the Advisory, FinCEN urges FATF members and all jurisdictions to advise financial institutions to continue to subject the Democratic People's Republic of Korea ("DPRK") to countermeasures and targeted sanctions in order to "protect the international financial system from money laundering and terrorist financing risks." U.S. sanctions prohibit U.S. persons, including U.S. financial institutions, from engaging in most transactions involving the DPRK.
On Iran, FinCEN chose to extend the suspension of its call for countermeasures; however, U.S. financial institutions remain subject to a broad range of restrictions and prohibitions on engaging in transactions with or involving the Iranian Government, Iranian financial institutions, and certain designated persons. Afghanistan and Lao PDR are no longer subject to the FATF on-going global AML/CFT compliance process, after a determination that both countries have made significant technical progress to improve their respective AML/CFT regimes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
