HM Treasury issues statement on money laundering controls in overseas jurisdictions – On 15 March 2010, HM Treasury issued a statement of advice about risks posed by unsatisfactory money laundering controls in a number of jurisdictions. This advice supersedes previous advice issued by HM Treasury in connection with deficiencies in these areas.
HM Treasury’s advice is based on a public statement issued by the Financial Action Task Force (FATF) on 18 February 2010, which drew attention to serious deficiencies in Iran, Angola, the Democratic People’s Republic of Korea, Ecuador, Ethiopia, Pakistan, Turkmenistan, and Sao Tome and Principe. The UK fully supports the work of the FATF on these matters and HM Treasury agrees with its assessments.
HM Treasury also refers to a separate FATF statement on the ongoing process to improve global anti-money laundering and countering terrorist finance (AML/CTF) compliance, in which the FATF drew attention to deficiencies in the AML/CTF regimes in a number of other jurisdictions.
In summary, the attention of UK financial institutions and other persons regulated for money laundering purposes is drawn to the FATF statements in relation to each of those jurisdictions, and they are asked to take this advice into account in respect of their systems and controls to counter financial crime.
In addition, specifically in relation to Iran, HM Treasury calls on all UK businesses regulated under the Money Laundering Regulations 2007 to treat transactions associated with Iran as situations that, by their nature, can present a higher risk of money laundering or terrorist financing, and which therefore require increased scrutiny, enhanced due diligence, and ongoing monitoring, particularly where correspondent relationships are involved.
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