This document contains advice issued by HM Treasury about risks posed by unsatisfactory money laundering and terrorist financing controls.The Money Laundering Regulations 2007 require firms to put policies and procedures in place in order to prevent activities related to money laundering and terrorist financing. This advice supersedes previous advice issued by HM Treasury in connection with deficiencies in these areas.
On 18th October 2013 the Financial Action Task Force (FATF) published two statements (included as annex A and B respectively) identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter financing regimes. The Money Laundering Regulations 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 18th October 2013, HM Treasury advises firms to :
Consider the following jurisdictions as high risk for the purposes of the Money Laundering Regulations 2007, and so advises firms to apply enhanced due diligence measures in accordance with the risks:
Algeria, DPRK*, Ecuador, Ethiopia, Indonesia, Iran*, Kenya, Myanmar, Pakistan, Syria*, Tanzania, Turkey and Yemen.
Take appropriate actions 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, Antigua and Barbuda, Argentina, Bangladesh, Cambodia, Cuba, Iraq, Kuwait, Kyrgyzstan, Lao DPR, Mongolia, Namibia, Nepal, Nicaragua, Sudan, Tajikistan, Vietnam and Zimbabwe*.
*These jurisdictions are subject to sanctions measures at the time of publication of this notice which require firms to take additional measures.
Link to the advisory press release: click here