Newsletter 733: Update on FATF high-risk countries and jurisdictions under increased monitoring
Ladies and Gentlemen
Dear Members
We are hereby informing you that the FATF (Financial Action Task Force) has updated its list of high-risk countries as well as its list of jurisdictions under increased monitoring.
Both high-risk countries and jurisdictions under increased monitoring have significant shortcomings in their anti-money laundering and anti-terrorist financing arrangements and, therefore, increased due diligence obligations must be applied to these countries. Unlike the high-risk countries, the jurisdictions under increased monitoring are actively working with the FATF to address their strategic shortcomings.
Further information can be found here:
The application of increased due diligence obligations with these countries is expressed in the fact that business relationships with persons residing in such a country are in any case considered as high-risk business relationships (cf. Art. 58 SRO regulations of 16 November 2020) and transactions from or to one of these countries are considered as high-risk transactions (cf. Art. 59 SRO regulations of 16 November 2020). Such business relationships and transactions require additional clarifications. Moreover, the listed countries are also relevant when establishing the identity of the beneficial owners of collective investment schemes and investment companies (cf. Art. 42 SRO regulations of 16 November 2020).
List of high-risk countries and other countries under increased monitoring (amendments marked in italics):
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High Risk Countries |
Jurisdictions under Increased Monitoring |
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Additionally, we would like to inform you that The Bahamas is not longer on the list of countries under increased monitoring. Further information can be found under this link.
We would also like to point out that the update of the FATF lists has resulted in an adjustment of the VQF country list (VQF doc. no. 902.4.1). VQF members can find the current country list in the Member Area on the Collaboration Platform.
Kind regards
VQF
Financial Services Standards Association
Please note that only the German version is legally binding.