Organisation for Economic Co-operation and Development

FATF Public Statement - 25 February 2011
The Financial Action Task Force (FATF) is the global standard setting body for anti-money launderingand combating the financing of terrorism (AML/CFT). In order to protect the international financial
system from 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 counter-measures
to protect the international financial system from the ongoing and substantial money laundering andterrorist financing (ML/TF) risks emanating from the jurisdictions.
Iran*
Democratic People's Republic of Korea (DPRK)* The FATF has previously issued public statements calling for counter-measures on Iran. Thosestatements are updated below.

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 and substantial deficiencies in its antimoney 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 toimmediately 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 25
February 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 June 2011.

Democratic People's Republic of Korea (DPRK)The FATF welcomes the initial engagement by the Democratic People’s Republic of Korea’s (DPRK)
with the FATF. However, 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 threat this poses to the integrity of the international financial system. The FATF urges
the DPRK to immediately 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/CFT
deficiencies, including through the FATF Secretariat.

http://www.fatf-gafi.org/documentprint/0,3455,en_32250379_32236992_47221771_1_1_1_1,00.html[2011/03/02 10:14:05]