The Financial Action Task Force (FATF), the global standard-setting body for anti-money laundering and combating the financing of terrorism (AML/CFT), has called on its members and other jurisdictions to apply counter- measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdiction of Democratic People's Republic of Korea (DPRK).
Further, FATF wants its members to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.
According to the Indian insurance regulator, IRDAI, thee FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threats they pose to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies.
Further, the FATF has serious concerns with the threat posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing
Also, while acknowledging that Iran has recently adopted the AML-CFT by law, which the FATF has not yet reviewed, the FATF expresses its disappointment that the Action Plan remains outstanding. The FATF expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items by completing and implementing the necessary AML/CFT reforms.
Iran will remain on the FATF Public Statement until the full Action Plan has been completed. Until Iran implements the measures requirement.
FATF has further identified the following jurisdictions as having strategic deficiencies which have developed an action plan with the FATF to deal with them.They are-
The Bahamas, Botswana, Cambodia, Ghana, Iceland,Mongolia, Pakistan,Panama,Syria,Trinidad and Tobago,Yemen and Zimbabwe.
The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. The FATF's decision making body, the FATF Plenary, meets three times a year and updates these statements, which may be noted.