FATF PUBLIC STATEMENT
18 February 2010
The Financial Action Task Force (FATF) is the global standard setting body for antimoney laundering and combating the financing of terrorism (AML/CFT). In order toprotect the international financial system from ML/FT risks and to encourage greater
compliance with the AML/CFT standards, the FATF identified jurisdictions that havestrategic deficiencies and, along with the FATF-style regional bodies (FSRBs), works
with them to address those deficiencies that pose a risk to the international financialsystem. The FATF and the relevant FSRBs will continue to work with the jurisdictions
below and report on their progress in addressing the identified deficiencies.
1. Jurisdictions subject to a FATF call on its members and other jurisdictions toapply countermeasures to protect the international financial system from theongoing and substantial money laundering and terrorist financing (ML/TF)
risks emanating from the jurisdiction 1 :Iran

2. Jurisdictions with strategic AML/CFT deficiencies that have not committed toan action plan developed with the FATF to address key deficiencies as ofFebruary 2010. The FATF calls on its members to consider the risks arising fromthe deficiencies associated with each jurisdiction, as described below.
Angola*Democratic People's Republic of Korea (DPRK)*
Ecuador
Ethiopia** Despite the FATF’s efforts, these jurisdictions have not constructively engaged with theFATF or an FSRB as of February 2010 and have not committed to the international
AML/CFT standards.
3. Jurisdictions previously publicly identified by the FATF as having strategic
AML/CFT deficiencies, which remain to be addressed as of February 2010 2 :PakistanTurkmenistan
São Tomé and Príncipe
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The FATF has previously issued public statements calling for counter-measures on Iran.
Those statements are updated below.

2

The FATF has previously issued public statements on these jurisdictions. These statements
are updated below.

11.
Jurisdictions subject to a FATF call on its members and otherjurisdictions to apply countermeasures to protect the international financial
system from the ongoing and substantial money laundering and terrorist
financing (ML/TF) risks emanating from the jurisdiction:
Iran
The FATF welcomes the recent steps that Iran has taken to engage with the FATF,
but remains concerned by Iran’s failure to meaningfully address the ongoing andsubstantial deficiencies in its anti-money laundering and combating the financing ofterrorism (AML/CFT) regime. The FATF remains particularly concerned about Iran’sfailure to address the risk of terrorist financing and the serious threat this poses to theintegrity of the international financial system. The FATF urges Iran to immediately andmeaningfully address its AML/CFT deficiencies, in particular by criminalising terroristfinancing and effectively implementing suspicious transaction reporting (STR)
requirements.
The FATF reaffirms its call on members and urges all jurisdictions to advise theirfinancial institutions to give special attention to business relationships andtransactions 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 of terrorism (ML/FT) risks
emanating from Iran. FATF continues to urge jurisdictions to protect against
correspondent relationships being used to bypass or evade counter-measures andrisk mitigation practices, and to take into account ML/FT risks when considering
requests by Iranian financial institutions to open branches and subsidiaries in theirjurisdiction. If Iran fails to take concrete steps to improve its AML/CFT regime, theFATF will consider calling on its members and urging all jurisdictions to strengthencounter-measures in June 2010.
2.
Jurisdictions with strategic AML/CFT deficiencies that have notcommitted to an action plan developed with the FATF to address key
deficiencies as of February 2010. The FATF calls on its members to consider
the risks arising from the deficiencies associated with each jurisdiction, as
described below.
Angola*Angola has not committed to the AML/CFT international standards, nor has it
responded to the FATF’s request for engagement on these issues. Angola’s lack of acomprehensive AML/CFT regime poses a risk to the international financial system.
Angola should work with the FATF to develop a viable AML/CFT regime in line withinternational standards.
Democratic People's Republic of Korea (DPRK)*The Democratic People’s Republic of Korea (DPRK) has not committed to theAML/CFT international standards, nor has it responded to the FATF’s request forengagement on these issues. DPRK’s lack of a comprehensive AML/CFT regime
poses a risk to the international financial system. DPRK should work with the FATF todevelop a viable AML/CFT regime in line with international standards.

2Ecuador
FATF has identified Ecuador as having strategic AML/CFT deficiencies. Ecuador
has engaged with the FATF and GAFISUD but has not delivered a clear high-level
political commitment to address these deficiencies. Ecuador should work with theFATF and GAFISUD to address these deficiencies, including by: (1) adequately
criminalising money laundering and terrorist financing (Recommendation 1 andSpecial Recommendation II); (2) establishing and implementing adequate procedures
to identify and freeze terrorist assets (Special Recommendation III); implementing
adequate procedures for the confiscation of funds related to money laundering(Recommendation 3); (3) Reinforcing and improving coordination of financial sector
supervision (Recommendation 23).
Ethiopia*
Ethiopia has not committed to the AML/CFT international standards, nor has it
constructively engaged with the FATF. The FATF has identified Ethiopia as having
strategic AML/CFT deficiencies that pose a risk to the international financial system.
Ethiopia should work with the FATF to develop a viable AML/CFT regime in line withinternational standards.

3.
Jurisdictions previously publicly identified by the FATF as havingstrategic AML/CFT deficiencies, which remain to be addressed as ofFebruary 2010
Pakistan
The FATF welcomes Pakistan's efforts to ensure that its Anti-Money LaunderingOrdinance (AMLO) remains in effect and to implement a permanent AML/CFTframework through legislation. However, FATF remains concerned regarding theML/FT risks posed by Pakistan and reaffirms its public statement of 28 February 2008
regarding these risks. In particular, the FATF expresses concern that Pakistan’s AntiMoney Laundering Ordinance (AMLO) will expire on 26 March 2010. The FATF
strongly urges Pakistan to implement a permanent AML/CFT framework before theexpiration of the AMLO and strongly encourages Pakistan to establish acomprehensive AML/CFT framework.
Turkmenistan
The FATF welcomes Turkmenistan’s continued progress in addressing its AML/CFT
deficiencies, including by taking steps towards establishing a Financial Intelligence
Unit (FIU). Given that the FIU is not yet operational, the FATF reiterates its
25 February 2009 statement informing financial institutions that these deficiencies
constitute an ML/FT vulnerability in the international financial system and that theyshould take appropriate measures to address this risk. Turkmenistan is urged tocontinue to take steps to implement an AML/CFT regime that meets international
AML/CFT standards and to work closely with the Eurasian Group and theInternational Monetary Fund to achieve this.
São Tomé and Príncipe
The FATF remains concerned by São Tomé and Príncipe’s failure to meaningfully
address the deficiencies in its AML/CFT regime, particularly relating to terrorist
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financing, and its recent lack of engagement with the Inter-Governmental Action
Group against Money Laundering in West Africa (GIABA). The FATF urges SãoTomé and Príncipe to work with GIABA to address the remaining AML/CFTdeficiencies. Failing concrete progress, the FATF will consider taking action in June2010 to protect the financial system from ML/TF risks emanating from São Tomé andPríncipe.

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