FATF Identifies Uncooperative Countries

February 17, 2012 International Tax Cooperation

FATF Identifies Countries with Risk of Money LaunderingPARIS – North Korea and Iran have been identified as posing the most significant risks of money laundering and terrorist financing in the world.

The Financial Action Task Force (FATF) issued a new public statement on February 16th, listing countries around the world which have significant deficiencies in their anti-money laundering regulations.

The FATF has identified Iran and North Korea as having serious shortcomings in their regulations against money laundering and terrorist financing. According to the FATF, the governments of North Korea and Iran have both repeatedly failed to take adequate steps in addressing their serious shortcomings in the fight against money laundering and terrorist financing.

Iran was urged by the FATF to immediately criminalize terrorist financing in national legislation and implement internationally accepted requirements for reporting of suspicious financial transactions.

The Task Force also offered direct assistance to North Korea in addressing its legislative shortfalls.

The FATF called on all its member countries to apply new counter-measures to protect national and international businesses from the continued and substantial risk of money laundering stemming out of Iran and North Korea.

The Task Force also identified several other countries which have already begun taking steps to combat terrorist financing and money laundering, but have yet to make sufficient progress in addressing the deficiencies.

The list presented in the latest FATF statement consists of Bolivia, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Myanmar, Nigeria, Pakistan, São Tomé and Príncipe, Sri Lanka, Syria, Tanzania, Thailand, and Turkey. However, attention was drawn to Cuba, which, the Task Force says, has not yet engaged in any dialogue regarding its regulations to fight money laundering and terrorist financing.

The Task Force identified the exact legislative shortcomings for each country, and warned the international society to consider the risks associated with each specific jurisdiction.

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