As part of its continuous review of compliance with the anti-money laundering and counter financing of terrorism (AML/CFT) standards, the Financial Action Task Force (FATF) announced in Paris in February a new list of countries with strategic AML/CFT deficiencies.
Serbia has been added to the list of deficient jurisdictions that have developed an action plan with the FATF while neighbouring Bosnia and Herzegovina has been removed.
Trade-based financial crime
In February 2018, Serbia made a high level political commitment to work with the FATF and its European affiliate, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies.
Some of the measures demand actions in matters associated with trade-based financial crime, including establishing an effective mechanism for ensuring timely access to beneficial ownership information regarding legal persons.
Bosnia and Herzegovina
FATF said it welcomed Bosnia and Herzegovina’s significant progress in improving its AML/CFT regime and that it has established the legal and regulatory framework to meet the commitments in its action plan regarding the strategic deficiencies FATF identified in June 2015.
Bosnia and Herzegovina is therefore no longer subject to the FATF’s monitoring process, but it will still work with MONEYVAL to improve its AML/CFT framework.
Ethiopia, Iraq, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu and Yemen remain on the list of countries with action plans to address AML/CFT deficiencies.
Iran and North Korea
Two countries remain on FATF’s so-called black list, Iran and North Korea. The task force recognises measures taken by Iran to address its deficiencies and decided to renew the suspension of countermeasures until its next meeting – a move seen by Tehran as politically motivated as it expected better results.
Meanwhile FATF sees North Korea as the top source of “ongoing and substantial” money laundering and terrorist financing, and urged other countries to keep it at arm’s length.
Categories: Trade Based Financial crimes News