High-risk and non-cooperative jurisdictions
FATF PUBLIC STATEMENT - 14 February 2014
Paris, 14 February 2014 - The Financial Action Task Force (FATF) is the global standard setting bodyfor anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect
the international financial system from money laundering and financing of terrorism (ML/FT) risks
and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions
that have strategic deficiencies and works with them to address those deficiencies that pose a risk to
the international financial system.

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the on-going and substantial
money laundering and terrorist financing (ML/FT) risks emanating from the jurisdictions.
Iran
Democratic People's Republic of Korea (DPRK)
Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress inaddressing the deficiencies or have not committed to an action plan developed with the FATF
to address the deficiencies. The FATF calls on its members to consider the risks arising fromthe deficiencies associated with each jurisdiction, as described below.
Algeria
Ecuador
EthiopiaIndonesia
Myanmar
Pakistan
Syria
TurkeyYemen

Kenya and Tanzania are now identified in the FATF document, "Improving Global AML/CFT
Compliance: On-going Process" due to their progress in substantially addressing their action
plan agreed upon with the FATF

Public Statement - 14 February 2014

Iran

The FATF remains particularly and exceptionally concerned about Iran’s failure to address therisk of terrorist financing and the serious threat this poses to the integrity of the international
financial system, despite Iran’s previous engagement with the FATF and recent submission ofinformation.

The FATF reaffirms its call on members and urges all jurisdictions to advise their financial
institutions to give special attention to business relationships and transactions with Iran,including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF
reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective
counter-measures to protect their financial sectors from money laundering and financing ofterrorism (ML/FT) risks emanating from Iran. The FATF continues to urge jurisdictions to protect
against correspondent relationships being used to bypass or evade counter-measures and risk
mitigation practices and to take into account ML/FT risks when considering requests by Iranianfinancial institutions to open branches and subsidiaries in their jurisdiction. Due to the continuing
terrorist financing threat emanating from Iran, jurisdictions should consider the steps alreadytaken and possible additional safeguards or strengthen existing ones.

The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, inparticular by criminalising terrorist financing and effectively implementing suspicious transaction
reporting (STR) requirements. If Iran fails to take concrete steps to continue to improve its CFT
regime, the FATF will consider calling on its members and urging all jurisdictions to strengthencounter-measures in June 2014.

Democratic People's Republic of Korea (DPRK)The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its
anti-money laundering and combating the financing of terrorism (AML/CFT) regime and theserious threat this poses to the integrity of the international financial system. The FATF urges theDPRK to immediately and meaningfully address its AML/CFT deficiencies.

The FATF reaffirms its 25 February 2011 call on its members and urges all jurisdictions to advise
their financial institutions to give special attention to business relationships and transactions withthe DPRK, including DPRK companies and financial institutions. In addition to enhanced scrutiny,
the FATF further calls on its members and urges all jurisdictions to apply effective countermeasures to protect their financial sectors from money laundering and financing of terrorism(ML/FT) risks emanating from the DPRK. Jurisdictions should also protect against correspondent
relationships being used to bypass or evade counter-measures and risk mitigation practices, andtake into account ML/FT risks when considering requests by DPRK financial institutions to open
branches and subsidiaries in their jurisdiction.
The FATF urges the DPRK to engage again with the FATF to address its AML/CFT deficiencies.
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Algeria

Algeria has taken steps towards improving its AML/CFT regime, including by issuing a decree toimprove Algeria’s implementation of obligations to freeze terrorist assets. However, despite Algeria’s
high-level political commitment to work with the FATF and MENAFATF to address its strategic
AML/CFT deficiencies, Algeria has not made sufficient progress in implementing its action planwithin the established timelines, and certain strategic deficiencies remain. Algeria should continue towork on implementing its action plan to address these deficiencies, including by: (1) adequately
criminalising terrorist financing; (2) establishing and implementing an adequate legal framework for
identifying, tracing and freezing terrorist assets and (3) adopting customer due diligence obligations
in compliance with the FATF Standards. The FATF encourages Algeria to address its deficiencies andcontinue the process of implementing its action plan.

EcuadorEcuador has taken significant steps towards improving its AML/CFT regime, including by enacting a
new criminal code, which includes provisions aimed at addressing deficiencies in Ecuador’s
criminalisation of money laundering and terrorist financing, and regime for freezing terrorist assets.
The FATF welcomes these developments but has not assessed these provisions due to their very
recent nature, and therefore the FATF has not yet determined the extent to which they address anyof the following issues: (1) ensuring adequate criminalisation of money laundering and terrorist
financing; (2) establishing and implementing adequate procedures to identify and freeze terrorist
assets; (3) implementing adequate procedures for the confiscation of funds related to money
laundering. Ecuador should continue to enhance co-ordination of financial sector supervision. TheFATF encourages Ecuador to address its remaining deficiencies and continue the process ofimplementing its action plan.

Ethiopia

Ethiopia has taken steps towards improving its AML/CFT regime, including by issuing a decree on
customer due diligence and regulations on the freezing of terrorist assets. The FATF has not assessed
the decree or the regulations due to their very recent nature, and therefore the FATF has not yet
determined the extent to which they address any of the following issues: (1) establishing andimplementing an adequate legal framework and procedures to identify and freeze terrorist assets;and (2) improving customer due diligence measures. The FATF encourages Ethiopia to address its
remaining deficiencies and continue the process of implementing its action plan.

Indonesia

Indonesia has taken steps towards improving its AML/CFT regime, including starting its
implementation of UNSCR 1267 and establishing a high-level task force working to implement
Indonesia’s terrorist asset-freezing regime. However, despite Indonesia’s high-level politicalcommitment to work with the FATF to address its strategic CFT deficiencies, Indonesia has not made3

Public Statement - 14 February 2014

sufficient progress in implementing its action plan within the agreed timelines, and certain key CFT
deficiencies remain regarding the development and implementation of an adequate legal framework
and procedures for identifying and freezing of terrorist assets. The FATF encourages Indonesia toaddress its remaining deficiencies in compliance with FATF standards by taking steps to fully
implement UNSCR 1267 and to clarify the legal framework and procedures for freezing terrorist
assets.

Myanmar

Myanmar has taken steps towards improving its AML/CFT regime. However, despite Myanmar’s
high-level political commitment to work with the FATF and APG to address its strategic AML/CFT
deficiencies, Myanmar has not made sufficient progress in implementing its action plan, and certain
strategic AML/CFT deficiencies remain. Myanmar should continue to work on implementing its
action plan to address these deficiencies, including by: (1) adequately criminalising terrorist
financing; (2) establishing and implementing adequate procedures to identify and freeze terrorist
assets; (3) further strengthening the extradition framework in relation to terrorist financing;(4) ensuring a fully operational and effectively functioning financial intelligence unit; (5) enhancing
financial transparency; and (6) strengthening customer due diligence measures. The FATF
encourages Myanmar to address the remaining deficiencies and continue the process ofimplementing its action plan.

Pakistan

Pakistan has taken further steps towards improving its AML/CFT regime, including by renewing its
Anti-Terrorism Amendment Ordinance to ensure that it continues to remain in effect while awaiting
enactment by Parliament. The FATF encourages Pakistan to expeditiously implement the ordinance,including its UNSCR 1373 obligations. The FATF continues to urge Pakistani authorities to take thenecessary steps to complete the parliamentary process to enact the ordinance into permanent law inorder for the FATF to authorise an on-site visit to confirm that the process of implementing therequired reforms and actions is underway to address deficiencies previously identified by the FATF.

Syria

Syria has taken steps towards improving its AML/CFT regime, including by promulgating
amendments to its AML/CFT Decree in July 2013. These amendments provide a legal basis forimplementing the obligations under UNSCR 1373. However, specific legal procedures forimplementing an adequate asset freezing regime need to be issued. Once Syria issues adequate
procedures, its FATF action plan will be substantially completed. At that time, the FATF will consider
appropriate next steps in the process.

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Public Statement - 14 February 2014

TurkeyTurkey has continued to take steps towards improving its CFT regime, including as demonstrated byrecent court decisions. The FATF welcomes Turkey's progress in largely complying with the FATF
standard on criminalisation of terrorist financing. However, certain concerns remain regarding
Turkey’s framework for identifying and freezing terrorist assets under UNSCRs 1267 and 1373. TheFATF encourages Turkey to address these remaining strategic deficiencies and continue the processof implementing its action plan.

Yemen

Yemen has taken steps towards improving its AML/CFT regime, including by adopting and bringing
into force amendments to its AML/CFT Law that adequately criminalise money laundering andterrorist financing and issuing regulations on the freezing of terrorist assets. The FATF has not fully
assessed and discussed the regulations with authorities due to their very recent nature, andtherefore the FATF has not yet determined the extent to which the regulations establish andimplement adequate procedures to identify and freeze terrorist assets. The FATF urges Yemen toaddress its remaining deficiency and continue the process of implementing its action plan.

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