FATF: High-Risk Jurisdictions subject to a Call for Action – October 2021

FATF: High-Risk Jurisdictions subject to a Call for Action – October 2021

Periodically, the FATF publishes a list of countries that have significant strategic deficiencies in their national AML/CFT/CPF regimes. For the countries that are considered to be of high risk, all jurisdictions should apply enhanced due diligence or, in the most serious cases, apply countermeasures in order to protect the international financial system from the effects of the money laundering, terrorist financing or financing of proliferation risks emerging from those countries.

Pursuant to article 11 of the AML/CFT State Ordinance, service providers are required to conduct enhanced customer due diligence if a business relationship or a transaction by its nature entails a higher risk of money laundering, terrorist financing or financing of proliferation. The identification of high-risk countries by the FATF increases the level of ML/TF/PF risk in a business relationship or a transaction. Service providers should take the necessary measures to mitigate the increased risk.

In its most recent statement of October 2021 (Documents – Financial Action Task Force (FATF) (fatf-gafi.org)), the FATF reiterates that, due to the COVID-19 pandemic, the review process for countries in the list of High-Risk Jurisdictions subject to a Call for Action is paused and refers to its statement of February 21, 2020 (Documents – Financial Action Task Force (FATF) (fatf-gafi.org)).

All service providers should be alert when conducting transactions involving the countries referred to in the FATF statement of February 21, 2020. If there is reason to assume that a transaction is related to ML/TF/PF, this should be reported promptly to the FIU-Aruba.