PUBLIC NOTICE No 2 of 2017 29th November 2017 CARIBBEAN FINANCIAL ACTION TASK FORCE AND FINANCIAL ACTION TASK FORCE PUBLIC STATEMENTS INTRODUCTION
This Public Statement issued by the Turks and Caicos Islands Financial Services Commission refers to specific Public Statements issued by the Caribbean Financial Action Task Force (CFATF) and the Financial Action Task Force (FATF) dated 15 th November 2017 and the 3 rd November 2017 respectively. The CFATF is an organisation of twenty-five jurisdictions of the Caribbean Basin Region, which have agreed to implement the international standards for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT). The Turks and Caicos Islands is a member of the CFATF. In order to protect the international financial system from money laundering and terrorist financing (ML/TF) risks and to encourage greater compliance with the AML/CFT standards, the CFATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system. The CFATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction as described below. The FATF is an inter-governmental policy making body whose objectives is to set AML/CFT standards and to promote effective implementations of legal, regulatory and operational measures to combat ML/TF and other threats to the integrity of the global financial system. Both the FATF and the CFATF produce public documents as required providing warnings, calls for action and information.
The Commission wishes to advise the general public, including all regulated, supervised, and other persons who are required to comply with the requirements of the Anti-Money Laundering and Prevention of Terrorist Financing Regulations, 2010 (as amended) and the Anti-Money Laundering and Prevention of Terrorist Financing Code 2011, to note the concerns expressed by the FATF and the CFATF with respect to the jurisdictions named in this Public Statement. When evaluating country risk, relevant persons must consider the money laundering and/or terrorist financing risks associated with each jurisdiction and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving any of the jurisdictions that have been identified by the 15th November 2017 CFATF Public Statement and the 3 rd November 2017 FATF Public Statement. All regulated and other persons must continue to monitor these periodic statements issued by the FATF and the CFATF as well as the other sanctions and counter-measures applied by bodies such as the European Union, the United Nations, the United Kingdom and the United States Department of the Treasury, the Office of Foreign Assets of Control (OFAC). Updates of such measures are also periodically made available on the Commission’s Website on the Sanctions tab. However, it should be noted that the most current information can be obtained directly from the body issuing the statement or counter measure. Regulated persons should be able to advise the Commission if they have any dealings with the above stated countries and to provide information on the level of enhanced due diligence adopted in relation to these countries, including business relationships with persons or entities.
CFATF PUBLIC STATEMENT On the 15 November 2017, the CFATF issued a Public Statement, the full version of which can be accessed by the link; (please click on the right top of the page for the November 2017 update. Recent Public Statement) https://www.cfatf-gafic.org/index.php/home/public-statements/488-cfatf-public-statementport-of-spain-trinidad-and-tobago-may-31st-2017 The public statement provided commentary, as follows; Jurisdiction with strategic AML/CFT deficiencies that has made sufficient progress in addressing the deficiencies. Haiti The CFATF acknowledges the progress made by Haiti in improving its AML/CFT regime (including significantly addressing the deficiencies that allowed Haiti to exit the 3rd Round Follow-Up Process) and notes that Haiti must continue to take measures to address the outstanding deficiencies that the CFATF had identified through the agreed action plan. Haiti is encouraged to increase the pace of the reform process, including the passage of remaining legislative measures, and demonstrate further progress by the May 2018 Plenary. Haiti and the CFATF should continue to work together to ensure that its action plan is fully implemented. CFATF – Jurisdiction exiting the Third Round of Mutual Evaluations. The CFATF XLVI November 2017 Plenary, held in Georgetown Guyana recognised the following jurisdiction that has made significant progress in addressing the deficiencies identified during the Third Round of Mutual Evaluations conducted by the CFATF and that have successfully exited the follow-up process.
The CFATF XLVI Plenary recognised that Haiti has made significant progress in addressing the deficiencies identified in its 2008 Mutual Evaluation Report; therefore, Haiti could exit the follow-up process. Haiti’s 12th Follow-Up Report which was presented At the new November 2017 Plenary, contains a detailed description and analysis of the actions taken by Haiti to rectify the deficiencies identified in respect of the Core and Key Recommendations rated PC or NC, as well as a summary of progress in other Recommendations, in the 2008 Mutual Evaluation Report. The CFATF encourages Haiti to continue its progress towards strengthening its AML/CFT framework and ensuring that it is fully prepared for 4th Round Mutual Evaluation that will take place in 2018
FATF PUBLIC STATEMENT Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the DPRK On 3 rd November 2017 The Financial Action Task Force (FATF) issued a Public Statement in which the FATF expressed deep concern with the proliferation financing risk emanating from the Democratic People’s Republic of Korea (DPRK) and highlights the importance of robust implementation of the FATF standards to this correct the DPRK’s illicit financial activities. Given the recent United Nations Security Council (UN SCE) resolutions passed this year that reinforce the strict financial restrictions on DPRK, the FATF is reiterating its relevant international standards related to proliferation financing. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction. Iran
In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies, and decision to seek technical assistance in the implementation of the action plan. In light of Iran is demonstration of its political commitment and the relevant steps it took, the FATF decided in June 2017 to continue the suspension of countermeasures. The action plan expires on January 31, 2018 and the FATF urges Iran to proceed swiftly in the reform path to ensure full and accurate implementation of the action plan, addressing all remaining AML/CFT deficiencies, particularly those related to terrorist financing. At its February meeting, the FATF will assess progress made by around all appropriate The full text of the FATF statement may be found by following the below link. http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/publicstatement-november-2017.html http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/publicstatement-november-2017.html IMPROVING GLOBAL AML/CFT COMPLIANCE: ON-GOING PROCESS The FATF document, “Improving Global AML/CFT Compliance: On-going Process” issued on 3 November 2017 identifies the following going jurisdictions that have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. The FATF welcomes these commitments. A number of jurisdictions have not yet been reviewed by the FATF. The FATF continues to identify additional jurisdictions on an ongoing basis, the pose a risk to the international financial system.
The FATF and the FATF – style regional bodies (FSRBs) will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The FATF calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The FATF will closely monitor the implementation of these action plans and encourages its members to consider the information presented below. Jurisdictions with strategic deficiencies Jurisdictions no longer subject to the FATF’s on-going global AML/CFT compliance process. Bosnia and Herzegovina Ethiopia Iraq Sri Lanka Syria Trinidad and Tobago Tunisia Vanuatu Yemen Uganda A copy of the FATF Compliance Statement “Improving Global AML/CFT Compliance: On-going Process” which includes commentary on each of the countries mentioned can be accessed by the link: http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/documents/fatfcompliance-november-2017.html
Paul Coleman Director of Compliance Turks and Caicos Islands Financial Services Commission. November 2017