AMLJuly 1, 2024

Update in FATF Public Statements – June 2024

The Financial Action Task Force (FATF) issued the latest documents relating to the ‘High-Risk Jurisdictions subject to a Call for Action’ and ‘Jurisdictions under Increased Monitoring’.

Entities and individuals subject to the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) are obliged to assess the risks emanating from any jurisdiction they are dealing with, including whether they deal with jurisdictions considered as non-reputable or high-risk jurisdictions. Hence, it is crucial for subject persons to stay well-informed about the updates contained in such documents and implement such updates, primarily through updating the Jurisdiction Risk Assessment (JRA). Additionally, subject persons are required to carrying out enhanced due diligence measures when dealing with natural or legal persons established or linked with such jurisdiction.

In the recent update, the FATF introduced Monaco and Venezuelato the ‘Jurisdictions that under Increased Monitoring’ which is also referred to as the ‘grey list’.

Monaco, known for hosting the highest concentration of millionaires and billionaires globally, has been placed on the grey list due to insufficient progress in addressing illicit financial activities.

A review by MONEYVAL in December 2022 highlighted several deficiencies in Monaco’s anti-money laundering efforts, including inadequate investigative and prosecutorial practices, poor case prioritisation, ineffective beneficial ownership checks, a weak sanctions regime, insufficient understanding of money laundering risks, and an overall ineffective AML regime despite some legislative and organisational improvements. While making progress in financial oversight, Monaco continues to encounter difficulties, especially in areas like tax fraud and the recovery of criminal assets.

Venezuela, since adopting its Mutual Evaluation Report (MER) in November 2022, has made some progress, such as updating its national risk assessment, which addresses issues linked to the nation’s large informal economy, including illegal mining. However, concerns about terrorist financing persist. By systematically tackling these areas, Venezuela aims to fulfil its FATF action plan commitments and enhance its overall financial integrity framework. This process requires sustained effort and commitment from both governmental and non-governmental stakeholders.

In June 2024, Monaco and Venezuela made a significant commitment at a high political level to collaborate with the Financial Action Task Force (FATF) and MONEYVAL. This collaboration aims to enhance the effectiveness of their Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regimes. The commitment signifies a strong dedication from both countries to improve their financial systems’ integrity, aligning with international standards to combat money laundering and the financing of terrorism more effectively.

In June 2024, the FATF removed Jamaica and Turkey from the ‘Jurisdictions under Increased Monitoring’, hence these jurisdictions are no longer subject to increased monitoring.

To summarise, the countries in the ‘grey-list’ are currently:  Bulgaria, Burkina Faso, Cameroon, Croatia, Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, Yemen

With regards the ‘High-Risk Jurisdictions subject to a Call for Action’, often referred to as ‘blacklist’, no changes were noted. Hence, countries in the ‘black-list’ include Iran, Democratic People’s Republic of Korea (DPRK) and Myanmar.

At Compliance 360 we can assist you. We can ease the responsibility of monitoring for document updates and ensuring your JRA is promptly updated with each change.  We have developed a model which takes into consideration multiple reliable indices, covering more than 250 jurisdictions, and is continuously updated. Our assessment is based on the latest FIAU’s requirements and principles.

Contact us on info@compliance360.mt or 21360000 to receive further information on the JRA, or to explore other services offered by Compliance 360 Ltd.