On 11 July 2018, HM Treasury published an advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions. The notice replaces previous advisory notices issued by HM Treasury on the subject.
The advisory notice refers to the two statements published by the Financial Action Task Force (FATF) identifying jurisdictions with strategic deficiencies in their anti-money laundering / counter terrorism financing (AML / CTF) regimes. In light of these FATF statements HM Treasury advises firms to consider the following:
- consider as high risk and apply counter measures and enhanced due diligence measures in accordance with the risks – Democratic People’s Republic of Korea;
- consider as high risk and apply enhanced due diligence measures in accordance with the risks – Iran; and
- take appropriate actions to minimise the associated risks, which may include enhanced due diligence measures in high risk situations – Ethiopia, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen.
The advisory notice also briefly covers two jurisdictions that are no longer subject to the FATF’s on-going global AML/CTF compliance process – Iraq and Vanuatu.