Newsletter 555: FATF Documents about Risk Classification of Certain Countries and Jurisdictions

Dear Sir or Madam,

On 6 July 2018, FINMA has communicated the following through a newsletter:

The FATF updated its statements on high-risk and non-cooperative jurisdictions at its plenary meeting held in June 2018. For more information, please consult:

• Public Statement – 29 June 2018
• Improving Global AML/CFT Compliance: On-going Process – 29 June 2018

The public document, the FATF’s Public Statement, identifies countries or jurisdictions with such serious strategic deficiencies that the FATF calls on its members and non-members to apply countermeasures as well as countries or jurisdictions for which the FATF calls on its members to apply enhanced due diligence measures proportionate to the risks arising from the deficiencies associated with the country.

The statement “Improving global AML/CFT compliance: on-going process” identifies countries or jurisdictions with strategic weaknesses in their AML/CFT measures which nonetheless have provided a high-level commitment to an action plan developed with the FATF. The situation differs from country to country with each country presenting varying degrees of risk for AML/CFT. The FATF encourages its members to consider the strategic deficiencies identified for these jurisdictions. If a country fails to make sufficient or timely progress, the FATF can decide to increase its pressure on the country to make meaningful progress by moving it to the Public Statement.

Account to be taken of the FATF statements
FINMA calls on all financial intermediaries to take the FATF information into account in their risk management strategies. It also requests recognized self-regulatory organizations to inform their members.

Kind regards,

VQF
Financial Services Standards Association