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Jurisdictions with strategic deficiencies regarding the AML / CFT standards as identified by the Financial Action Task Force (FATF) and measures to address them

Wednesday, 2 September, 2015
CSR & Compliance

Registered diamond dealers must apply enhanced customer due diligence measures if their customers are domiciled or established in one of the following 4 jurisdictions, or if they have any other links to these jurisdictions, or if they are involved in a transaction or a business relationship with them in any capacity: Iran, Democratic People’s Republic of Korea, Algeria and Myanmar.

In its public statement from 26 June 2015, the FATF identified 4 jurisdictions that still pose a significant risk to the international financial system due to their lack of a comprehensive AML/CFT regime, among which are two jurisdictions for which the FATF still requires countermeasures to be taken: Iran and the Democratic People’s Republic of Korea.

This statement means that the diamond dealers that are subject to the Law of 11 January 1993 (the anti-money laundering law) must apply enhanced customer due diligence measures with respect to transactions with customers who are domiciled or established in any of these countries, or are in any way involved herewith. This means that diamond companies should take additional investigative measures above and beyond those that Belgian anti-money laundering legislation requires. For instance, they are requested to conduct a targeted investigation into the origin of the client’s funds or assets, and should regularly conduct checks and controls regarding their relationship with their clients. 

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

The diamond dealers are requested to take into account the specific risks linked to the following countries when making their risk assessment:  Afghanistan, Angola, Bosnia and Herzegovina, Ecuador, Guyana, Iraq, Lao PDR, Panama, Papua New Guinea, Sudan, Syria, Uganda and Yemen.

The complete announcement can be found via this link.