High-Risk Jurisdictions subject to a Call forAction – 21 February 2020
High-risk jurisdictions have significant strategic deficiencies in their regimes tocounter money laundering, terrorist financing, and financing of proliferation. For all
countries identified as high-risk, the FATF calls on all members and urges all
jurisdictions to apply enhanced due diligence, and in the most serious cases, countries
are called upon to apply counter-measures to protect the international financial
system from the ongoing money laundering, terrorist financing, and proliferation
financing (ML/TF/PF) risks emanating from the country. This list is often externallyreferred to as the “black list”. *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 the serious threats they pose to the integrity of theinternational financial system. The FATF urges the DPRK to immediately andmeaningfully address its AML/CFT deficiencies. Further, the FATF has serious concernswith the threat posed by the DPRK’s illicit activities related to the proliferation ofweapons of mass destruction (WMDs) and its financing.
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 with the DPRK, including DPRK companies, financial institutions, andthose acting on their behalf. In addition to enhanced scrutiny, the FATF further calls on
its members and urges all jurisdictions to apply effective counter-measures, andtargeted financial sanctions in accordance with applicable United Nations Security
Council Resolutions, to protect their financial sectors from money laundering,financing of terrorism and WMD proliferation financing (ML/TF/PF) risks emanatingfrom the DPRK. Jurisdictions should take necessary measures to close existing
branches, subsidiaries and representative offices of DPRK banks within their territories
and terminate correspondent relationships with DPRK banks, where required byrelevant UNSC resolutions.

Iran
In June 2016, Iran committed to address its strategic deficiencies. Iran’s action plan
expired in January 2018. In February 2020, the FATF noted Iran has not completed theaction plan.[1]In October 2019, the FATF called upon its members and urged all jurisdictions to:require increased supervisory examination for branches and subsidiaries of financial
institutions based in Iran; introduce enhanced relevant reporting mechanisms or
systematic reporting of financial transactions; and require increased external audit
requirements for financial groups with respect to any of their branches andsubsidiaries located in Iran.
Now, given Iran’s failure to enact the Palermo and Terrorist Financing Conventions inline with the FATF Standards, the FATF fully lifts the suspension of counter-measuresand calls on its members and urges all jurisdictions to apply effective countermeasures, in line with Recommendation 19.[2]Iran will remain on the FATF statement on [High Risk Jurisdictions Subject to a Call forAction] until the full Action Plan has been completed. If Iran ratifies the Palermo andTerrorist Financing Conventions, in line with the FATF standards, the FATF will decideon next steps, including whether to suspend countermeasures. Until Iran implements
the measures required to address the deficiencies identified with respect to countering
terrorism-financing in the Action Plan, the FATF will remain concerned with theterrorist financing risk emanating from Iran and the threat this poses to theinternational financial system.

[1] In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT
deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan. Since 2016, Iranestablished a cash declaration regime, enacted amendments to its Counter-Terrorist Financing Act and its AntiMoney Laundering Act, and adopted an AML by-law.
In February 2020, the FATF noted that there are still items not completed and Iran should fully address: (1)adequately criminalizing terrorist financing, including by removing the exemption for designated groups“attempting to end foreign occupation, colonialism and racism”; (2) identifying and freezing terrorist assets in linewith the relevant United Nations Security Council resolutions; (3) ensuring an adequate and enforceable customer
due diligence regime; (4) demonstrating how authorities are identifying and sanctioning unlicensed money/valuetransfer service providers; (5) ratifying and implementing the Palermo and TF Conventions and clarifying thecapability to provide mutual legal assistance; and (6) ensuring that financial institutions verify that wire transfers
contain complete originator and beneficiary information.
[2] Countries should be able to apply appropriate countermeasures when called upon to do so by the FATF.
Countries should also be able to apply countermeasures independently of any call by the FATF to do so. Suchcountermeasures should be effective and proportionate to the risks.

The Interpretative Note to Recommendation 19 specifies examples of the countermeasures that could
be undertaken by countries.
* This statement was previously called "Public Statement"