FATF: JURISDICTIONS UNDER INCREASED MONITORING – JUNE 2024

FATF statement

Periodically, the Financial Action Task Force (FATF) publishes a list of countries with identified strategical AML/CFT/CPF shortcomings. Whenever FATF places a jurisdiction under increased monitoring, it means that the jurisdiction has committed itself to mitigate the identified shortcomings within a certain timeframe. Within this timeframe, the jurisdiction will be subject to increased monitoring by the FATF or the FSRBs.

In its public statement of June 2024, the following countries have been added to the list of jurisdictions that are subject to increased monitoring: Monaco and South Africa. Countries that are no longer under increased monitoring are Cambodia and Venezuela.

The following countries had their progress reviewed since February 2024 and their statements were updated accordingly: Bulgaria; Burkina Faso, Cameroon, Croatia, Democratic Republic of Congo, Haiti, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Tanzania, and Vietnam. The previously issued statements issued by FATF for Kenya, Namibia, Syria and Yemen have not changed as these countries chose to defer reporting.

Countries that are no longer subject to FATF increased monitoring are Jamaica and Türkiye.

 

Responsibility of reporting entities

Designated financial and non-financial service providers are required to take the former into consideration in their risk analysis and to apply a risk-based approach. Thus, enhanced due diligence measures are not required nor should designated service providers resort to de-risking activities or cut-off customers.

Considering the above and in line with the risk-based approach, it is important to remain alert for red flags. If there is reason to assume that a transaction (i.e. financial transaction/service) is related to AML/CFT/CPF, this should be reported promptly to FIU-Aruba in an unusual transaction report under the subjective indicator 130201 or 130202.

Additionally, FIU-Aruba reiterates the importance of conducting a ‘sanctions-check’ to determine whether transaction(s) must be reported objectively under indicator 130102 (see in particular: “Aanwijzing geconsolideerde lijst VNSC” and “Aanwijzing EU Sancties Bevriezingsmaatregelen”) and to determine whether national freezing measures are applicable.

 

Click on the following link to find the FATF statement on jurisdictions under increased monitoring:

Jurisdictions under Increased Monitoring – June 2024 (fatf-gafi.org)

FIU-Aruba reiterates the importance that service providers stay abreast of the public statements that are published on the website of the FATF in relation to jurisdictions that are under increased monitoring and high-risk jurisdictions subject to a call for action.

Should there be any questions, please feel free to contact us.