FATF Public Statement - 28 October 2011
Paris, 28 October 2011 - 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 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.
Cuba**Bolivia
Ethiopia
Kenya
MyanmarNigeriaSão Tomé and Príncipe
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.

IranThe FATF, with a renewed urgency, is particularly and exceptionally concerned about Iran’s failure toaddress the risk of terrorist financing and the serious threat this poses to the integrity of theinternational financial system, despite Iran’s engagement with the FATF.
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 totake into account ML/FT risks when considering requests by Iranian financial institutions to open
branches and subsidiaries in their jurisdiction. Due to the continuing terrorist financing threat
emanating from Iran, jurisdictions should consider the steps already taken and possible additionalsafeguards or strengthen existing ones.
The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular
by criminalising terrorist financing and effectively implementing suspicious transactions reporting(STR) requirements. If Iran fails to take concrete steps to improve its CFT regime, the FATF willconsider calling on its members and urging all jurisdictions to strengthen counter-measures inFebruary 2012.

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 to
immediately and meaningfully address its AML/CFT deficiencies.
The FATF reaffirms its 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 and financial institutions. In addition to enhanced scrutiny, the FATF
further calls on its members and urges all jurisdictions to apply effective counter-measures to protecttheir financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating fromthe DPRK. Jurisdictions should also protect against correspondent relationships being used to bypass
or evade counter-measures and risk mitigation practices, and take into account ML/FT risks when
considering requests by DPRK financial institutions to open branches and subsidiaries in theirjurisdiction.
The FATF remains prepared to engage directly in assisting the DPRK to address its AML/CFT
deficiencies, 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
Bolivia has taken steps towards improving its AML/CFT regime, including by enacting new CFTlegislation. However, despite Bolivia’s high-level political commitment to work with the FATF andGAFISUD to address its strategic AML/CFT deficiencies, Bolivia has not made sufficient progress inimplementing its action plan, and certain strategic AML/CFT deficiencies remain. Bolivia should workon addressing these deficiencies including by: (1) ensuring adequate criminalisation of money
laundering (Recommendation 1); (2) adequately criminalising terrorist financing (SpecialRecommendation II); (3) establishing and implementing an adequate legal framework for identifying
and freezing terrorist assets (Special Recommendation III); and (4) establishing a fully operationaland effective Financial Intelligence Unit (Recommendation 26). The FATF encourages Bolivia toaddress its remaining deficiencies and continue the process of implementing its action plan.

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 orlegal persons that do not comply with the national AML/CFT requirements (Recommendation 17). TheFATF 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 notcomply 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 setting up its FIU.

MyanmarDespite 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 work on addressing thesedeficiencies, including by: (1) adequately criminalising terrorist financing (Special RecommendationII); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets(Special Recommendation III); (3) further strengthening the extradition framework in relation toterrorist financing (Recommendation 35 and Special Recommendation I); (4) ensuring a fully
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.

Nigeria
Nigeria has taken steps towards improving its AML/CFT regime, including by enacting AML/CFTlegislation. However, despite Nigeria’s high-level political commitment to work with the FATF andGIABA to address its strategic AML/CFT deficiencies, Nigeria has not made sufficient progress in
implementing its action plan, and certain strategic deficiencies remain. Nigeria should work onaddressing these deficiencies, including by: (1) adequately criminalising money laundering andterrorist financing (Recommendation 1 and Special Recommendation II); (2) implementing adequate
procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring that
relevant laws or regulations address deficiencies in customer due diligence requirements and that they
apply to all financial institutions (Recommendation 5); and (4) continuing to improve the overall
supervisory framework for AML/CFT (Recommendation 23). The FATF encourages Nigeria to address
its remaining deficiencies and continue the process of implementing its action plan.

São Tomé and Príncipe
Despite São Tomé and Príncipe’s high-level political commitment to work with the FATF to address its
strategic AML/CFT deficiencies, São Tomé and Príncipe has not made sufficient progress in
implementing its action plan, and certain strategic deficiencies remain. São Tomé and Príncipe should
work on addressing these deficiencies, including by: (1) adequately criminalising money launderingand terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing a fully
operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) ensuringthat financial institutions and DNFBPs are subject to adequate AML/CFT regulation and supervision,and that a competent authority or competent authorities have been designated to ensure compliancewith AML/CFT requirements (Recommendations 23, 24 and 29); (4) 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); and (5) taking the necessary
action to gain membership of GIABA. The FATF encourages São Tomé and Príncipe to address its
remaining deficiencies and continue the process of implementing its action plan.

Sri Lanka
Sri Lanka has taken steps towards improving its AML/CFT regime, including by enacting AML/CFTamendments. However, despite Sri Lanka’s high-level political commitment to work with the FATF andAPG 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 shouldwork on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing
and addressing the remaining deficiencies with regard to the criminalisation of money laundering(Special Recommendation II and Recommendation 1); 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 significant steps towards improving its AML/CFT regime, including by improving thelegal arrangements for freezing terrorist assets. However, despite Syria’s high-level politicalcommitment to work with the FATF and MENAFATF to address 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 Suppressionof Financing of Terrorism (Special Recommendation I); (2) implementing adequate procedures foridentifying and freezing terrorist assets (Special Recommendation III); (3) ensuring that financial
institutions are aware of and comply with their obligations to file suspicious transaction reports inrelation to ML and FT (Recommendation 13 and Special Recommendation IV); and (4) ensuring thatappropriate laws and procedures are in place to provide 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 submitting CFT legislation
to Parliament. 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

http://www.fatf-gafi.org/documentprint/0,3455,en_32250379_32236992_48966519_1_1_1_1,00.html[2011/11/11 11:17:20]