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Money Laundering & Terrorist Financing Controls in Overseas Jurisdictions

On 31st March 2015, HM Treasury published an advisory notice that revises the previous money laundering and terrorist financing controls in overseas jurisdictions.

This notice sets out HM Treasury’s guidance about the risks posed by inadequate controls over money laundering and terrorist financing in a number of overseas jurisdictions and makes reference to the Financial Action Task Force’s (FATF) statements, published at the end of February. FATF identified various jurisdictions with strategic deficiencies in their counter terrorist financing and anti-money laundering (AML) regimes.

In response to the FATF statements, HM Treasury advises firms to consider the following jurisdictions as high risk for the purposes of Money Laundering Regulations 2007 and advises firms to apply enhanced due diligence measures to them in accordance with the risks:

• Algeria
• DPRK*
• Ecuador
• Iran*
• Myanmar

HM Treasury also advise firms to take appropriate actions to minimise the associated risks, which may include enhanced due diligence measures in high risk situations for the following jurisdictions:

• Afghanistan*
• Panama
• Angola
• Papua New Guinea
• Guyana
• Sudan
• Indonesia
• Syria*
• Iraq*
• Uganda
• Lao PDR
• Yemen

*It should be noted that these jurisdictions are subject to sanctions measures at the time of HM Treasury’s Advisory Notice, that requires firms to take additional measures.

To view additional information on current Sanctions Measures visit HM Treasury’s Financial Sanctions List & Releases.

HM Treasury Update