FATF updates the list of non-compliant jurisdictions

At the end of 2020 FATF resumed the monitoring of non-compliant jurisdictions. The evaluation has remained on hold due to the pandemic. After thorough re-evaluation of compliance requirements in February 2021, the list of jurisdictions under the monitoring currently comprises 22 countries. The mentioned list (or a “grey list of FATF countries”) includes jurisdictions with the low standard of the AML/CFT compliance.

In June 2021 a number of jurisdictions expressed their high-political commitment for the cooperation with FATF. Amongst those jurisdictions are Albania, Mauritius, Malta and South Sudan. The mentioned jurisdictions have a number of deficiencies which remain incompatible with AML/CFT regime. The main main tasks to improve remain:

(1) the elaboration of the effective model dealing with the risk assessment;

(2) the improvement of work of law enforcement agencies performing financial investigation;

(3) the increase of transparency of information about beneficial owners;

(4) the maintenance of strong international cooperation.

On FATF Plenary meeting on 20-25 June 2021 the representative of World Bank, United Nations and other reputable international organizations discussed the ways to improve AML compliance worldwide. One of the proposed solutions was the inclusion of modern technologies to combat tax evasion. The participants focused on combatting money laundering deriving from environmental crimes as illegal mining etc.

The special attention received compliance deficiencies of Japan and South Africa. Despite having a strong AML legislation, those countries still have a number of issues which need to be resolved. In particular, the lack or tracking related to beneficial ownership’s information and illegal cash flows. Furthermore, the participants agreed to issue soon a separate compliance report on those two countries after performing additional review.

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