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The answers to most NCCT-related FAQ can be found on the NCCT homepage. Here are a few of the most frequently asked questions:
Wire transfer to an individual in a country on the NCCT list
The FATF has indicated that for all jurisdictions on the NCCTs list, FATF Recommendation 21 applies. Recommendation 21 indicates that financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from jurisdictions that do not adequately apply the FATF Recommendations. But it is up to individual jurisdictions to determine specifically how to apply this recommendation (such as whether or not to process a transaction and/or report it as a suspicious transaction). Many countries have issued specific guidance; you would therefore need to consult your regulator to determine which precise rules apply in your situation.
Countries not listed on NCCT list
A total of 47 countries or territories were reviewed in-depth by the FATF, and a total of 23 were listed in 2000 and 2001. For the other countries, the FATF has not made a review and therefore does not have any information to provide. The specific countries reviewed under this process were determined according to their priority by the FATF members based on their experiences in international cooperation and the significance of the country as a financial center or as a source of illegal proceeds. Therefore, the larger financial centers and the countries with which FATF had experienced greater difficulties in receiving co-operation were reviewed first. There are some countries which indeed might not have sufficient anti-money laundering measures--but they were not prioritised for review by the FATF.
Does the FATF have a "gray"or "black" list of countries?
Although the FATF does not have a list of "restricted" countries, the FATF does maintain a list of non-cooperative countries and territories.
Country X is not currently on the NCCTs list. Does this mean it has been “certified” or can be granted “equivalence” status?
The FATF does not grant equivalence status or “certify” countries, nor does the FATF issue opinions on whether a country is "safe" or may be treated in the same manner as an FATF (or any other) country. The situation whereby certain countries recognise "equivalence" or the anti-money laundering laws and systems of other countries for certain limited purposes, such as customer identification, is a matter for each country. For instance, pursuant to the EC Directive 91/308/EEC, European countries provide exemptions from some of their anti-money laundering obligations if a counterpart institution is from another European Union, or sometimes another FATF country, or some other jurisdictions as well. This is a matter that is determined by each country and not by the FATF, based upon the adequacy of the anti-money laundering laws in the other country.
How were countries selected for review?
Countries selected for review are determined on a priority basis, based on member’s experience. Therefore, the larger financial centers and the countries with which FATF had experienced greater difficulties in receiving co-operation were reviewed first.
Can you provide any information on Country X, which has never been on the NCCTs list and is not an FATF member?
The FATF reviews the situation in its members and through the NCCTs process. The FATF has not reviewed the situation in other countries and therefore has no information to provide. However, the country may be part of an FATF-style regional body (FSRB), which are Observers to FATF. You might therefore find some information through the appropriate FSRB website; the links to FSRB websites can be found under the Observers section or our website.
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