FATF Public Statement - 24 June 201124 June 2011 - 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 to protect theinternational financial system from ML/FT risks and to encourage greater compliance with theAML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works withthem 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 counter-measures
to protect the international financial system from the on-going and substantial money launderingand terrorist financing (ML/TF) 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 toaddress the deficiencies** The FATF calls on its members to consider the risks arising from thedeficiencies associated with each jurisdiction, as described below.
Bolivia
Cuba**Ethiopia
Kenya
Myanmar
Sri Lanka
Syria
Turkey* The FATF has previously issued public statements calling for counter-measures on Iran and DPRK.
Those statements are updated below.
**Cuba has not engaged with the FATF in the process.

Iran
The FATF remains concerned by Iran’s failure to meaningfully address the on-going and substantial
deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.
The FATF remains particularly concerned about Iran’s failure to address the risk of terrorist financing
and the serious threat this poses to the integrity of the international financial system. The FATF urges
Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising
terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements.
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 Iraniancompanies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25February 2009 call on its members and urges all jurisdictions to apply effective counter-measures toprotect 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 and risk mitigation practices and to
take into account ML/FT risks when considering requests by Iranian financial institutions to open
branches and subsidiaries in their jurisdiction. If Iran fails to take concrete steps to improve its
AML/CFT regime, the FATF will consider calling on its members and urging all jurisdictions tostrengthen counter-measures in October 2011.

Democratic People's Republic of Korea (DPRK)The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its antimoney laundering and combating the financing of terrorism (AML/CFT) regime and the serious threat
this poses to the integrity of the international financial system. The FATF urges the DPRK toimmediately and meaningfully address its AML/CFT deficiencies.
The FATF calls 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
and financial institutions. In addition to enhanced scrutiny, the FATF further calls on its members andurges all jurisdictions to apply effective counter-measures to protect their financial sectors frommoney 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 countermeasures and risk mitigation practices, and take into account ML/FT risks when considering requests
by DPRK financial institutions to open branches and subsidiaries in their jurisdiction.
The FATF remains prepared to engage directly in assisting the DPRK to address its AML/CFTdeficiencies, including through the FATF Secretariat.
________________________

Cuba
Cuba has not committed to the AML/CFT international standards, nor has it constructively engaged
with the FATF. The FATF has identified Cuba as having strategic AML/CFT deficiencies that pose a risk
to the international financial system. The FATF urges Cuba to develop an AML/CFT regime in line withinternational standards, and is ready to work with the Cuban authorities to this end.
________________________

Bolivia
Despite Bolivia’s high-level political commitment to work with the FATF and GAFISUD to address its
strategic AML/CFT deficiencies, Bolivia has not made sufficient progress in implementing its action
plan, and certain strategic AML/CFT deficiencies remain. Bolivia should work on addressing these
deficiencies including by: (1) ensuring adequate criminalisation of money laundering(Recommendation 1); (2) adequately criminalising terrorist financing (Special Recommendation II);(3) establishing and implementing an adequate legal framework for identifying and freezing terrorist
assets (Special Recommendation III); and (4) establishing a fully operational and effective Financial
Intelligence Unit (Recommendation 26). The FATF encourages Bolivia to address its remaining
deficiencies and continue the process of implementing its action plan, including by continuing to workon its AML/CFT legislation.

Ethiopia
Despite Ethiopia’s high-level political commitment to work with the FATF to address its strategic
AML/CFT deficiencies, Ethiopia has not made sufficient progress in implementing its action plan, andcertain strategic AML/CFT deficiencies remain. Ethiopia should work on addressing these deficiencies,including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation
1 and Special Recommendation II); (2) establishing and implementing an adequate legal framework
and procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring afully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4)raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27);
and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or
legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The
FATF encourages Ethiopia to address its remaining deficiencies and continue the process ofimplementing its action plan.

Kenya
Despite Kenya’s high-level political commitment to work with the FATF and ESAAMLG to address its
strategic AML/CFT deficiencies, Kenya has not made sufficient progress in implementing its action
plan, and certain strategic AML/CFT deficiencies remain. Kenya should work on addressing thesedeficiencies, including by: (1) adequately criminalising terrorist financing (Special RecommendationII); (2) ensuring a fully operational and effectively functioning Financial Intelligence Unit(Recommendation 26); (3) establishing and implementing an adequate legal framework for identifying
and freezing terrorist assets (Special Recommendation III); (4) raising awareness of AML/CFT issues
within the law enforcement community (Recommendation 27); and (5) implementing effective,
proportionate and dissuasive sanctions in order to deal with natural or legal persons that do notcomply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Kenya
to address its remaining deficiencies and continue the process of implementing its action plan,
including by implementing the AML legislation and operationalising the new AML Advisory Board.

MyanmarMyanmar has taken steps towards improving its AML/CFT regime, including by clarifying the scope ofthe ML offence. Despite Myanmar’s high-level political commitment to work with the FATF and APG toaddress 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 work on
addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (SpecialRecommendation II); (2) establishing and implementing adequate procedures to identify and freeze
terrorist assets (Special Recommendation III); (3) further strengthening the extradition framework inrelation to terrorist financing (Recommendation 35 and Special Recommendation I); (4) ensuring afully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (5)enhancing financial transparency (Recommendation 4); and (6) strengthening customer due diligencemeasures (Recommendation 5). The FATF encourages Myanmar to address its remaining deficiencies
and continue the process of implementing its action plan.

Sri Lanka
Despite Sri Lanka’s high-level political commitment to work with the FATF and APG to address its
strategic AML/CFT deficiencies, Sri Lanka has not made sufficient progress in implementing its action
plan, and certain strategic AML/CFT deficiencies remain. Sri Lanka should work on addressing these
deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing(Recommendation 1 and Special Recommendation II); and (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets (Special Recommendation III). The FATF
encourages Sri Lanka to address its remaining deficiencies and continue the process of implementing
its action plan, including by continuing to work on its AML/CFT legislation.

Syria
Syria has taken steps towards improving its AML/CFT regime, including by improving the ML and TF
offences. Despite Syria’s high-level political commitment to work with the FATF and MENAFATF toaddress its strategic AML/CFT deficiencies, Syria has not made sufficient progress in implementing its
action plan, and certain strategic AML/CFT deficiencies remain Syria should work on addressing its
deficiencies, including by: (1) adopting adequate measures to implement and enforce the 1999
International Convention for the Suppression of Financing of Terrorism (Special Recommendation I);(2) implementing adequate procedures for identifying and freezing terrorist assets (SpecialRecommendation III); (3) ensuring financial institutions are aware of and comply with their
obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 andSpecial Recommendation IV); and (4) ensuring appropriate laws and procedures are in place toprovide mutual legal assistance (Recommendations 36-38, Special Recommendation V). The FATF
encourages Syria to address its remaining deficiencies and continue the process of implementing its
action plan.

TurkeyTurkey has taken steps towards improving its AML/CFT regime, including by working on CFTlegislation. Despite Turkey’s high-level political commitment to work with the FATF to address its
strategic AML/CFT deficiencies, Turkey has not made sufficient progress in implementing its action
plan, and certain strategic AML/CFT deficiencies remain. Turkey should work on addressing thesedeficiencies, including by: (1) adequately criminalising terrorist financing (Special RecommendationII); and (2) implementing an adequate legal framework for identifying and freezing terrorist assets(Special Recommendation III). The FATF encourages Turkey to address its remaining deficiencies andcontinue the process of implementing its action plan.

Top of page