High-risk and non-cooperative jurisdictions
FATF PUBLIC STATEMENT - 24 October 2014
Paris, 24 October 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 toaddress the deficiencies. The FATF calls on its members to consider the risks arising from thedeficiencies associated with each jurisdiction, as described below.
Algeria
EcuadorIndonesia
MyanmarPublic Statement - 24 October 2014

IranThe 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 financialinstitutions 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 riskmitigation 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 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 strengthen countermeasures in February 2015.

Democratic People's Republic of Korea (DPRK)
Since June 2014, the DPRK has further engaged directly with the FATF and APG to discuss its
AML/CFT deficiencies. The FATF urges the DPRK to continue its cooperation with the FATF and toprovide a high-level political commitment to the action plan developed with the FATF.
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.
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Public Statement - 24 October 2014

Algeria
Algeria has taken steps towards improving its AML/CFT regime. However, despite Algeria’s highlevel 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 plan within theestablished timelines, and certain strategic deficiencies remain. Algeria should continue to work 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 incompliance with the FATF Standards. The FATF encourages Algeria to address its remaining
deficiencies and continue the process of implementing its action plan.

EcuadorEcuador has taken steps towards improving its AML/CFT regime including by issuing AML/CFT
regulations for companies supervised by Superintendence of Companies. However, despite
Ecuador’s high-level political commitment to work with the FATF and GAFISUD to address itsstrategic AML/CFT deficiencies, Ecuador has not made sufficient progress in implementing its action
plan, and certain strategic deficiencies remain. Ecuador should continue to work on implementing its
action plan to address these deficiencies, including by (1) establishing and implementing adequate
procedures to identify and freeze terrorist assets and (2) clarifying procedures for the confiscationof funds related to money laundering. Ecuador should also continue enhancing financial sector
supervision. The FATF encourages Ecuador to address its remaining deficiencies and continue theprocess of implementing its action plan.

Indonesia
Indonesia has taken steps towards improving its AML/CFT regime including by further
implementing its terrorist asset-freezing regime. However, despite Indonesia’s high-level politicalcommitment to work with the FATF and APG to address its strategic CFT deficiencies, Indonesia has
not made 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 to address its remaining deficiencies in compliance with FATF standards by fully
implementing UNSCR 1267 and improving the legal framework and procedures for freezing terrorist
assets.

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Public Statement - 24 October 2014

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 of
implementing its action plan.

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