High-risk and non-cooperative jurisdictions

Why is the FATF dealing with high-risk and non-cooperative jurisdictions?

Responding to the threat posed by high-risk and non-cooperative jurisdictions is a key objective of the FATF’s mission for promoting the global implementation of its AML/CFT standards. Worldwide compliance with the standards protects the integrity of the international financial system and enhances international co-operation on AML/CFT. In addition, public identification of non-compliance has encouraged jurisdictions to improve their AML/CFT systems through addressing their strategically important deficiencies.

Identification of high-risk and non-cooperative jurisdictions

On the basis of the results of the ICRG review, jurisdictions may be publicly identified in one of the two FATF public documents that are issued three times a year.

The first public document, the FATF’s Public Statement, identifies:

1) jurisdictions that have strategic AML/CFT deficiencies and to which counter-measures apply

As of October 2011, this includes Iran and the Democratic People’s Republic of Korea)

2) Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies.

As of October 2011, this includes: Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Nigeria, São Tomé and Príncipe, Sri Lanka, Syria, and Turkey. For these jurisdictions, the FATF calls upon its members to consider the risks arising from the deficiencies associated with the jurisdiction.

Click here to see the latest FATF Public Statement on jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies

In the second FATF public document, “Improving Global AML/CFT Compliance: On-going Process”, the FATF identifies jurisdictions with strategic AML/CFT deficiencies that have provided a high-level political commitment to address the deficiencies through implementation of an action plan developed with the FATF. The situation differs in each jurisdiction and therefore each presents different degrees of ML/FT risks. The FATF encourages its members to consider the strategic deficiencies identified in the second public document. Jurisdictions subject to the second public document, as of October 2011, are: Algeria, Angola, Antigua and Barbuda, Argentina, Bangladesh, Brunei Darussalam, Cambodia, Ecuador, Ghana, Honduras, Indonesia, Kyrgyzstan, Mongolia, Morocco, Namibia, Nepal, Nicaragua, Pakistan, Paraguay, Philippines, Sudan, Tajikistan, Tanzania, Thailand, Trinidad and Tobago, Turkmenistan, Venezuela, Vietnam, Yemen, and Zimbabwe.

Click here to see the latest FATF Public document "Improving Global AML/CFT Compliance: On-going Process"

Click here to view all the public documents concerning high-risk and non-cooperative jurisdictions

Monitoring of Progress

The FATF closely monitors progress of these jurisdictions and the implementation of their action plans. The FATF will continue to work with the jurisdictions during the implementation of their action plans until adequate progress has been made and jurisdictions can be removed from public identification. The FATF will also continue, on an ongoing basis, to identify additional jurisdictions that pose ML/FT risks to the international financial system.

In particular, the FATF called upon its members and urged all jurisdictions to strengthen preventive measures and apply effective counter-measures against Iran and the Democratic People’s Republic of Korea, since February 2009 and February 2011, respectively.

More information