Topic: High-risk and non-cooperative jurisdictions

Topic: High-risk and non-cooperative jurisdictions

On the basis of the results of the review by the International Co-operation Review Group (ICRG), the FATF identifies jurisdictions with strategic AML/CFT deficiencies in the two FATF public documents that are issued three times a year (see also, an overview of the jurisdictions currently identified in this process). 

The first public document, the FATF’s Public Statement, identifies:

1) jurisdictions that have strategic AML/CFT deficiencies and to which counter-measures apply

2) Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies.

In the second FATF public document, “Improving Global AML/CFT Compliance: On-going Process”, the FATF identifies jurisdictions with strategic AML/CFT deficiencies that have provided a high-level political commitment to address the deficiencies through implementation of an action plan developed with the FATF. The situation differs in each jurisdiction and therefore each presents different degrees of ML/FT risks. The FATF encourages its members to consider the strategic deficiencies identified in the second public document.

Monitoring of Progress

The FATF closely monitors progress of these jurisdictions and the implementation of their action plans. The FATF will continue to work with the jurisdictions during the implementation of their action plans until adequate progress has been made and jurisdictions can be removed from public identification. The FATF will also continue, on an ongoing basis, to identify additional jurisdictions that pose ML/FT risks to the international financial system.

In particular, the FATF called upon its members and urged all jurisdictions to strengthen preventive measures and apply effective counter-measures against Iran and the Democratic People’s Republic of Korea, since February 2009 and February 2011, respectively.