Financial institutions in Singapore have been advised by the country’s regulator that they should continue to refer to the Financial Action Task Force (FATF) statement of February 2020 in respect of the Democratic People’s Republic of Korea (DPRK) and Iran as well as the latest FATF statement on Myanmar.
The Monetary Authority of Singapore (MAS) concedes that the FATF statements may not reflect the most recent status of the DPRK’s and Iran’s anti-money laundering and countering the financing of terrorism (AML/CFT) regimes, but confirms that the task force has continued to pause the review process for the two blacklisted countries. The FATF’s call for action against both countries therefore remains in effect
The FATF statement issued in February 2020 highlighted the strategic deficiencies in the AML/CFT regimes of the DPRK and Iran.
The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its AML/CFT regime and the serious threats they pose to the integrity of the international financial system.
Singapore’s financial institutions are therefore advised by MAS to continue enhanced due diligence as advised by the FATF. They should also comply with the requirements in the MAS (Sanctions and Freezing of Assets of Persons – DPRK) Regulations 2016, and apply appropriate risk mitigation measures taking into account relevant guidance provided by MAS.
Iran’s FATF action plan expired in January 2018 and in February 2020, the task force noted that Iran had not completed its plan. Financial institutions in Singapore should therefore consider Iran a high-risk jurisdiction and apply enhanced due diligence measures accordingly.
They should also continue to comply with the requirements in the MAS (Sanctions and Freezing of Assets of Persons – Iran) Regulations 2016, and apply appropriate risk mitigation measures taking into account relevant guidance provided by MAS.
In response to the FATF last month listing Myanmar as a high-risk jurisdiction, MAS says financial institutions must apply enhanced due diligence measures accordingly to detect and mitigate the risks associated with higher-risk customers and transactions.
They should however ensure that flows of funds for humanitarian assistance, legitimate non-profit organisation activities and remittances are not disrupted when applying enhanced due diligence measures.
The MAS reminder, October 2022 FATF Statement, together with relevant links to the original FATF statements regarding DPRK, Iran and Myanmar can be found here.
Categories: Trade Based Financial crimes News