FATF holds plenary: FATF has held its latest plenary session. Among the conclusions and papers resulting from it were:

  • to continue to call on members to use countermeasures in respect of Iran and North Korea;
  • to announce that Algeria, Ecuador, Indonesia and Myanmar have not made enough progress in reforms to their anti-money laundering (AML) laws. A further 18 jurisdictions are under review, and FATF feels Argentina, Cuba, Ethiopia, Tajikistan and Turkey have made enough progress to no longer be subject to ongoing compliance monitoring;
  • to clarify the risk-based approach, in the light of what it refers to as the "de-risking phenomenon": it confirms its belief in financial inclusion and says banks should terminate relationships only where they cannot mitigate AML and terrorist finance risks. They should not use blanket decisions not to do business as a replacement for the risk-based approach;
  • to publish guidance on transparency and beneficial ownership: the guidance looks at what beneficial ownership is, and suggests measures to improve transparency and to ensure appropriate information is available to authorities; and
  • to publish guidance on a risk-based approach in the banking sector: this guidance is specific to the banking sector and provides information for both banks and supervisors on how best to achieve compliance with the risk-based approach (including dealing with the de-risking problem).

(Source: FATF Holds PlenaryFATF Guidance to Banking Sector and FATF Guidance on Transparency and Beneficial Ownership)