HM Treasury has published its latest advisory notice on money laundering and terrorist financing controls in overseas jurisdictions. The notice replaces all previous advisory notices issued by HM Treasury on this subject.
On 24 October 2014, the Financial Action Task Force (FATF) published two statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter terrorist financing regimes. The Money Laundering Regulations 2007 (MLR 2007) require regulated entities to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing.
In response to the statements published by FATF on 24 October 2014, HM Treasury advises firms to:
- consider the following jurisdictions as high risk for the purposes of the MLR 2007, and advises firms to apply enhanced due diligence measures in accordance with these risks: Algeria, Ecuador, Indonesia, Iran, Myanmar and the Democratic Peoples’ Republic of Korea; and
- take appropriate action in relation to the following jurisdictions to minimise the associated risks, which may include enhanced due diligence measures in high risk situations: Afghanistan, Albania, Angola, Cambodia, Guyana, Iraq, Kuwait, Lao PDR, Namibia, Nicaragua, Pakistan, Panama, Papua New Guinea, Sudan, Syria, Uganda, Yemen and Zimbabwe.