High-risk jurisdictions (Call for action)

The FATF has identified jurisdictions with significant deficiencies requiring enhanced due diligence (ECDD) and, in some cases, countermeasures to mitigate risks to the international financial system. Key jurisdictions include:

1. DPRK (North Korea):
   • Persistent deficiencies in AML/CFT/CPF frameworks.
   • FATF calls for robust countermeasures, including terminating banking relationships and limiting financial transactions.
2. Iran:
   • Concerns over terrorism financing and proliferation risks.
   • Recommended measures include prohibiting new financial relationships and limiting transactions while ensuring humanitarian funds are handled appropriately.
3. Myanmar:
   • Limited progress on action plan commitments.
   • Enhanced due diligence measures are advised, ensuring humanitarian and legitimate activities remain unaffected.

Jurisdictions under increased monitoring

• 22 jurisdictions, including Kuwait and Papua New Guinea, are under increased monitoring (commonly referred to as the "grey list").
• These jurisdictions are actively working to address deficiencies. FATF advises a risk-based approach without unnecessary de-risking or cutting off entire customer classes.

Guidance for compliance

The BVI FSC advises entities to:

• Apply appropriate due diligence measures when dealing with customers or transactions linked to jurisdictions under increased monitoring.
• Implement enhanced due diligence and countermeasures for high-risk jurisdictions.
• Continuously monitor transactions involving clients from identified jurisdictions for any changes that may require adjustments in due diligence measures.

For detailed statements, visit the FATF public statements here and BVI FSC Circular 10 here.