FinCEN Alerts US Financial Institutions on FATF's Latest Statements and AML/CFT Updates

The Financial Crimes Enforcement Network (FinCEN) has notified US financial institutions about a recent statement from the Financial Action Task Force (FATF) following its plenary meeting. The statement reiterates FATF's stance on the Russian Federation's aggression against Ukraine, emphasizing the suspension of Russia's membership due to its actions conflicting with FATF's principles.

In a released statement, FATF underscored the potential risks posed to the international financial system by Russia's increasing financial ties with the Democratic People’s Republic of Korea (DPRK) and Iran. The highlighted risks include proliferation financing, malicious cyber activities, and ransomware attacks. FATF urges all jurisdictions to maintain vigilance against these risks to safeguard the integrity of the international financial system.

Additionally, FATF updated its lists of jurisdictions with strategic anti-money laundering/combating the financing of terrorism/countering proliferation financing (AML/CFT/CPF) deficiencies. Kenya and Namibia have been added to the list of Jurisdictions Under Increased Monitoring, while Barbados, Gibraltar, Uganda, and the United Arab Emirates have been removed from that list.

FATF's list of High-Risk Jurisdictions Subject to a Call for Action remains unchanged, with Iran, DPRK, and Burma being subject to calls for action. Iran and DPRK are still under FATF's countermeasures, while Burma is subject to enhanced due diligence requirements, although not countermeasures.

By fLEXI tEAM