HM Treasury has published an Advisory Notice on money laundering and terrorist financing controls in overseas jurisdictions.

On 24 June 2016, the FATF published two statements identifying jurisdictions with deficiencies in their anti-money laundering and counter terrorist financing regimes.

In response to the statements published, HM Treasury has advised firms to consider the following jurisdictions as high risk for the purposes of the Money Laundering Regulations 2007, where firms must apply enhanced due diligence measures in accordance with the risks:

• North Korea and
• Iran

Additionally, firms must take appropriate actions in relation to the following jurisdictions:

• Afghanistan
• Bosnia and Herzegovina
• Guyana
• Iraq
• Lao PDR
• Syria
• Uganda
• Vanuatu
• Yemen

These jurisdictions are also subject to sanctions measures.

Source: HM Treasury, Advisory Notice on Money Laundering and Terrorist Financing controls in Overseas Jurisdictions, 6 July 2016. = http://bit.ly/29nzeMy

Notes:

The Financial Action Task Force (FATF) is an inter-governmental body that was established by the G7 in 1989 to tackle money laundering and terrorist finance.

The Money Laundering Regulations / Orders / Acts – require firms to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing.

Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring in situations which present a higher risk of money laundering or terrorist financing. It is a criminal offence to breach the money laundering regulations.