HM Treasury has published an updated advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions. This advice replaces all previous advisory notices issued by HM Treasury on the subject.
HM Treasury advises firms to consider the Financial Action Task Force’s (FATF) latest statements (reproduced in Annex A and Annex B to the advisory notice) which identify jurisdictions with strategic deficiencies in their anti-money laundering (AML) and countering the financing of terrorism (CFT) regimes. The Treasury advises the following:
- consider the Democratic People’s Republic of Korea (DPRK) as high risk and apply counter measures and enhanced due diligence (EDD) measures in accordance with the risks;
- consider Iran as high risk and apply EDD measures in accordance with the risks; and
- with regards to the following jurisdictions, take appropriate steps to minimise the risks which may include EDD measures in high risk situations: The Bahamas, Botswana, Ethiopia, Ghana, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen.
DPRK, Iran, Syria, Tunisia and Yemen are subject to sanctions measures which would require firms to take additional measures when conducting EDD.