AML-ATF Ministerial Advisory 3/2019: Money Laundering and Terrorist Financing controls in higher risk jurisdictions
Requirement to apply Enhanced Due Diligence for higher risk jurisdictions
Minister of Legal Affairs, Hon. Kathy Lynn Simmons, JP, today issued AML-ATF Advisory 3/2019 about the risks in a number of jurisdictions arising from inadequate systems and controls to combat money laundering and terrorist financing. The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations) require the Bermuda regulated sector and relevant persons to apply enhanced customer due diligence to high-risk countries.
- Regulation 11 (1)(aa) of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, requires that a relevant person must apply on a risk-sensitive basis enhanced customer due diligence measures to business relationships with customers in instances where a person or a transaction is from or in a country that has been identified as having a higher risk by the Financial Action Task Force or the Caribbean Financial Action Task Force; and
- Regulation 11 (1)(ab) requires a relevant person to apply, on a risk-sensitive basis, enhanced customer due diligence in instances where a person or transaction is from or in a country which represents a higher risk of money laundering, corruption, terrorist financing or being subject to international sanctions.
As the international anti-money laundering and counter-terrorist financing (AML/CFT) standard-setter, FATF regularly publishes statements that identify high-risk countries based on assessments of their AML/CFT regimes. In accordance with Regulation 11 (1)(aa), the Minister for Legal Affairs would like to draw the regulated sector’s and relevant persons’ attention to the latest FATF publication on high risk jurisdictions.
FATF Public Statement
On 18 October, 2019 FATF published two statements identifying jurisdictions with strategic deficiencies in their AML/CFT regimes. These statements are included at Annexes A and B.
In response to the latest FATF statements, the Minister of Legal Affairs advises the regulated sector and relevant persons to consider the following:
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Minister of Legal Affairs Advice: |
Consider as a high risk and apply counter measures and enhanced due diligence measures in accordance with the risks |
Consider as high risk and apply enhanced due diligence measures in accordance with the risks |
Take appropriate actions to minimise the associated risks, which may include enhanced due diligence measures in high risk situations |
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Jurisdictions: |
Democratic People’s Republic of Korea* (DPRK) |
Iran* |
The Bahamas Botswana Cambodia Ghana Iceland Mongolia Pakistan Panama Syria* Trinidad and Tobago Yemen* Zimbabwe* |
CFATF Public Statement
On 27 November, 2019 CFATF published a statement identifying jurisdictions with strategic deficiencies in their AML/CFT regimes. The statement is included at Annex C.In response to the latest CFATF statement, the Minister of Legal Affairs advises the regulated sector and relevant persons to consider the following:
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Minister of Legal Affairs Advice: |
Take appropriate actions to minimise the associated risks, which may include enhanced due diligence measures in high risk situations |
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Jurisdictions: |
Sint Maarten |
To ensure that an appropriate determination of the risks relating to these jurisdictions can be carried out, it is important that the annexed statements are read in their entirety. All financial institutions and relevant persons, in the implementation of their systems and controls to combat financial crime, should give consideration to the FATF and CFATF assessments and take appropriate actions in light of the associated risks.
*These jurisdictions are subject to sanctions measures at the time of publication of this notice which require firms to take additional measures, in accordance with the International Sanctions Regulations 2013. Details can be found here:
International Sanctions Regulations 2013
AML/ATF Ministerial Advisory 3-2019
Please see the following links for more information about international sanctions: https://www.gov.bm/international-sanctions-measures and https://www.gov.uk/government/collections/financial-sanctions-regime-specific-consolidated-lists-and-releases