On 13th February, a news release from the US Treasury said that it has significant concerns about the substance of the list and the “flawed” process by which it was developed – saying that the process for developing its list contrasts starkly with FATF’s thorough methodology. It also said that the Commission failed to provide affected jurisdictions with any meaningful opportunity to challenge their inclusion or otherwise address issues identified by the Commission. The list, which it says varies from that of FATF, includes American Samoa, Guam, Puerto Rico, and the US Virgin Islands. It concludes by saying that it does not expect US financial institutions to take the Commission’s list into account in their AML/CFT policies and procedures.
The draft EU Regulation involved is at –
The Bahamas, Botswana, Ethiopia, Ghana, Iran, Democratic People’s Republic of Korea, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Yemen are in the top tier; 11 additional jurisdictions present strategic deficiencies, the Commission says: Afghanistan, American Samoa, Guam, Iraq, Libya, Nigeria, Panama, Puerto Rico, Saudi Arabia, US Virgin Islands, Samoa. It says that these 11 jurisdictions all have strategic deficiencies in their AML/CFT when considering the threat level and their risk profile. The strategic deficiencies can cover a range of shortcomings in the legal and institutional framework, as well as a lack of effectiveness of the AML/CFT system in addressing the money laundering or terrorist financing risks faced by the country. It also said that the analysis concluded that for a number of countries no sufficient grounds for identifying strategic deficiencies were found at this stage. However, the Commission will continue to keep those countries under further review.
EU COMMISSION ADOPTS STRICTER BLACKLIST OF MONEY LAUNDERERS
EU Q&A SHEET –