FATF calls for countermeasures on high-risk jurisdictions
Financial institutions must apply FATF enhanced due diligence and countermeasure controls for high-risk jurisdictions
FATF
·
Change
FATF identified DPRK, Iran and Myanmar as high-risk jurisdictions subject to a call for action and reiterated enhanced due diligence and countermeasure expectations.
Why it matters
The update sets the FATF baseline for how countries and regulated firms treat exposure to high-risk jurisdictions. Financial institutions, VASPs and correspondent-banking teams must map DPRK, Iran and Myanmar exposure to enhanced due diligence, countermeasure and targeted-financial-sanctions controls rather than treating the jurisdictions as ordinary country-risk cases.
Implications
- — Financial institutions must apply enhanced due diligence to customers, counterparties, transactions and correspondent relationships connected to FATF high-risk jurisdictions.
- — Correspondent-banking teams must terminate or restrict DPRK-linked correspondent relationships, subsidiaries and branches in line with FATF countermeasure expectations.
- — Financial institutions and virtual asset service providers must apply FATF countermeasure controls to Iran-linked branches, representative offices, correspondent relationships, business relationships and financial transactions.
Full decision brief
See the decision layer
Use 1 free preview to unlock implications, who’s affected, what to watch, and Clarify for this brief.
2 free previews left this month · Resets 1 Jun
Source