Jurisdictions with strategic anti-money laundering and counter-terror financing deficiencies
FIC advises on higher risk jurisdictions
The FIC Act requires accountable institutions to apply a risk-based approach when performing its customer due diligence process. In simple terms, this means the greater the risk the client poses for Money Laundering and Terrorist Financing (ML/TF) the higher the level of customer due diligence would be required.
Guidance note 7, which was published by the Financial Intelligence Centre to assist institutions with the implementation of aspects on the FIC Act, provides guidance on assessing ML/TF risks. Factors that may indicate ML/TF risks relate to a number of aspects such as:
Delivery channels; and
One indicator that accountable institutions need to take into account in relation to geographic areas is, whether the country from where the client engages with the institution is considered a high-risk jurisdiction. For example, countries with deficiencies in regulating anti-money laundering and counter-terror financing in some instances are considered high-risk jurisdictions.
The FIC recently published advisories in relation to statements from the Financial Action Task Force please see links below
Institutions engaging with clients and institutions from these countries should adhere to the guidance issued by the FIC.