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Financial Action Task Force: These nations have AML deficiencies 

The Financial Action Task Force (FATF) identified jurisdictions that have strategic deficiencies in their anti-money laundering and financing of terrorism controls in a public statement Friday.

The FATF is a membership body that sets the global standards for anti-money laundering (AML) and financing of terrorism (FT) programs and controls.

Whether they are members of the Task Force or not, jurisdictions with AML and FT deficiencies pose a substantial risk to the international financial system, the FATF said in its statement.

Iran and North Korea are the regions with the most serious AML/FT risks and no discernible measures to protect the international financial system from them, the FATF said.

The areas that had serious deficiencies and have either not corrected them or committed to creating an action plan with the FATF to address them are: Algeria, Ecuador, Ethiopia, Indonesia, Myanmar, Pakistan, Syria, Turkey and Yemen.

Kenya and Tanzania were labeled improving in terms of their global AML/FT compliance measures, a step up from the nations listed above. Both are working with the FATF to address and improve their action plans.

Most of the countries with serious deficiencies were criticized for not adequately criminalizing terrorizing financing; not establishing sufficient procedures to identify and freeze terrorist assets; and failing to strengthen customer due diligence measures.

The steps each of these nations have taken toward improving their AML/FT regimes were noted as well, particularly if the country showed a high-level political commitment to work with the FATF to address weaknesses.


Julie DiMauro is the executive editor of FCPA Blog and can be reached here.