FATF – High-Risk Jurisdictions subject to a Call for Action – October 2023
As of October 2023, the FATF identifies certain jurisdictions as high-risk due to significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and the financing of proliferation. These jurisdictions, often referred to as being on the „black list,“ are subject to a FATF call for action, urging all members and jurisdictions to apply enhanced due diligence measures. In the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the risks these countries pose.
Jurisdictions Subject to a Call for Action:
- Democratic People’s Republic of Korea (DPRK): The FATF has expressed ongoing concerns about DPRK’s failure to address its AML/CFT deficiencies, which pose serious threats to the international financial system. The FATF calls for countermeasures and targeted financial sanctions in accordance with UNSC Resolutions to protect against ML/TF/PF risks from DPRK.
- Iran: Since Iran has not completed its action plan and failed to enact the Palermo and Terrorist Financing Conventions in line with FATF Standards, the FATF has fully lifted the suspension of counter-measures. The FATF calls for effective countermeasures to be applied, and Iran will remain on this list until it fully addresses its AML/CFT deficiencies.
Jurisdiction Subject to Enhanced Due Diligence Measures:
- Myanmar: After failing to address its strategic deficiencies and complete its action plan by October 2022, the FATF calls for enhanced due diligence measures to be applied to business relations and transactions with Myanmar. The FATF urges Myanmar to address its AML/CFT deficiencies, including the supervision of money or value transfer services based on ML/TF risks.
The FATF continually revises its standards to address emerging risks, such as the applicability of proliferation financing risk assessment and mitigation requirements to virtual asset activities and service providers, as noted in the October 2021 revision of the FATF Recommendations.