The FIAU would like to bring to your attention the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' (previously known as ‘Public Statement’) and 'Jurisdictions under Increased Monitoring' (previously known as ‘Improving global AML/CFT compliance: on-going process’) documents issued by the FATF on 21 October 2021. A copy of these documents has been uploaded on the FIAU’s website under ‘Country Statements’.
The FATF classifies the jurisdictions included in these documents into different categories, in accordance with the deficiencies present in such jurisdictions and the level of commitment and progress made in addressing such deficiencies.
The categories are the following:
1. Jurisdictions with strategic deficiencies in their regime to counter money laundering, terrorist financing, and financing of proliferation that have failed to meaningfully address their AML/CFT deficiencies and are subject to a call for counter-measures (listed under 'High-Risk Jurisdictions subject to a Call for Action’). This process is informally referred to as black listing;
2. Jurisdictions that have developed an action plan with the FATF and have made a high-level political commitment to address their AML/CFT deficiencies (listed in the 'Jurisdictions under Increased Monitoring'). This process is informally referred to as “grey listing”. This document also lists jurisdictions that are no longer subject to the FATF on-going global AML/CFT compliance process, where applicable.
Subject persons are required to implement the measures set out under Regulation 11 of the Prevention of Money Laundering and Funding of Terrorism Regulation S.L. 373.01 (“PMLFTR”) and under Chapter 8 of the FIAU Implementing Procedures Part I, which is legally binding upon all subject persons in terms of Regulation 17 of the PMLFTR.
High-Risk Jurisdictions subject to a Call for Action’
Since February 2020, in light of the COVID-19 pandemic, the FATF has paused the review process for countries in the list of High-Risk Jurisdictions subject to a Call for Action, given that they are already subject to the FATF’s call for countermeasures. Therefore, subject persons should refer to the list of ‘High-Risk Jurisdictions subject to a Call for Action’ adopted in February 2020. While the statement may not necessarily reflect the most recent status in Iran and the Democratic People’s Republic of Korea’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect. Subject persons should refer to Regulation 11(11) of the PMLFTR and apply the enhanced due diligence measures therein.
'Jurisdictions under Increased Monitoring'
Since the start of the COVID-19 pandemic, the FATF has provided some flexibility to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. The following countries had their progress reviewed by the FATF since June 2021: Albania, Barbados, Botswana, Cambodia, Cayman Islands, Jamaica, Malta, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, Uganda, and Zimbabwe. Burkina Faso, Haiti, and South Sudan were given the opportunity and chose to defer reporting; thus, the statements issued for these jurisdictions may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime. Following review, the FATF now also identifies Jordan, Mali, and Turkey.
With regards to the enhanced due diligence measures to be applied to the above-mentioned jurisdictions, subject persons should refer to Regulation 11(10) of the Prevention of Money Laundering and Funding of Terrorism Regulations.
Reminder: The FIAU has issued an interpretative note to guide subject persons as to how they are to adhere to their AML/CFT obligations in light of Malta being placed under increased monitoring by the FATF. The interpretative note may be downloaded from the ‘Publications & Consultation’ section of the FIAU’s website.
In the event that any further information is required, you may contact the FIAU on queries@fiaumalta.org
