Financial Action Task Force (FATF) announces enhanced customer due diligence measures

The Financial Action Task Force (FATF) announces that registered diamond dealers must implement enhanced customer due diligence measures when transacting or doing business with customers or companies that are domiciled or established in one of the following 15 jurisdictions: Iran, Democratic People’s Republic of Korea, Ecuador, Ethiopia, Indonesia, Yemen, Kenya, Myanmar, Nigeria, Pakistan, São Tomé and Príncipe, Syria, Tanzania, Turkey, Vietnam.

In its public statement of February 22, 2013 the FATF has identified 15 jurisdictions that pose a significant risk to the international financial system due to the lack of a comprehensive AML / CFT regime. Among the list are two jurisdictions for which the FATF insists counter-measures should be taken (Iran and the Democratic People’s Republic of Korea).

This statement implies that diamond dealers, subject to the Law of 11th January 1993 (the anti-money laundering law) must implement enhanced customer due diligence measures with respect to the transactions or any other business relations with customers who are domiciled or established in any of these countries.

More specifically, the statement concerns the following 15 countries: Iran, Democratic People’s Republic of Korea, Ecuador, Ethiopia, Indonesia, Yemen, Kenya, Myanmar, Nigeria, Pakistan, São Tomé and Príncipe, Syria, Tanzania, Turkey, Vietnam

Furthermore, as part of the ongoing review of compliance with the AML / CFT standards, to date, the FATF has ascertained and identified those jurisdictions that have strategic AML  / CFT deficiencies for which they have developed an action plan in collaboration with the FATF. 

In that respect, diamond dealers are requested to take into account the specific risks linked to the following countries, in regard to risk assessment:  Afghanistan, Albania, Algeria, Angola, Antigua en Barbuda, Argentina, Bangladesh, Bolivia, Brunei Darussalam, Cuba, Cambodia, Kyrgyzstan, Kuwait, Morocco, Mongolia, Namibia, Nepal, Nicaragua, Philippines, Sudan, Sri Lanka, Tajikistan, Thailand, Zimbabwe.

The complete announcement can be found here.

For further details on the deficiencies of each of these jurisdictions, we kindly refer tot this document.