FATF BUSINESS BULLETIN - fatf-gafi.org

1 FATF BUSINESS BULLETIN This report provides a brief update on outcomes from the February 2018 FATF plenary meeting that are relevant for the private sector. The complete summary of outcomes from the Plenary is available c h 2018 High-risk and other m onitored JurisdictionsRecen t im por t an t FATF ou t com es r elevan t f or :Proliferation Financing:-The FATF has updated its gu idan ce on t h e im plem en t at ion of f in an cial pr ovision s of UN Secu r it y Cou n cil Resolu t ion s (UN SCRs) t o cou n t er t h e pr olif er at ion of w eapon s of m ass dest r u ct ion. This guidance will help public and private sector understand and im plem ent the financial provisions of UNSCRs on proliferation and prevent sanctions evasion.

2 The adopted Guidance is available Coordination and Cooperation: -The FATF adopted revisions to Recom m endation 2 to em phasise that cooperation and cooperation should include coor din at ion w it h t h e r elevan t au t h or it ies t o en su r e t h e com pat ibilit y of An t i M on ey Lau n der in g an d Cou n t er Ter r or ist Fin an cin g (AM L/ CFT) r equ ir em en t s w it h Dat a Pr ot ect ion an d Pr ivacy (DPP) r u les an d ot h er sim ilar pr ovision s ( dat a secu r it y / localisat ion ). Im proving the com patibility of AML/ CFT and DPP rules will facilitate exchange of inform ation between the public and private Sharing: -The FATF adopted changes to the Methodology for Recom m endation 18, which clarify the requirem ents on sh ar in g in f or m at ion r elat ed t o u n u su al or su spiciou s t r an sact ion s w it h in f in an cial gr ou ps.

3 The FATF also adopted changes to the Methodology for Recom m endation 21 to clarify the interaction of these requirem ents with tipping off provisions. Under Recom m endation 23, these requirem ents will also apply to Dealers in Non-Financial Businesses and Professions (DNFBPs). Counter-Terrorist Financing:-The FATF has developed a n ew cou n t er -t er r or ist f in an cin g (CTF) oper at ion al plan which will focus its future efforts in responding to the current terrorist financing risks and strengthening the global CTF standards. For an overview of the recent outcom es achieved as part of the 2016 operational plan, see private sectorExperience vs DisciplineOther Relevant Outcom es Developments on De-risking -Th e Wolf sber g Gr ou p presented to plenary on their recently published Cor r espon den t Ban k in g Du e Diligen ce Qu est ion n air e, which the FATF in a joint statem ent with BCBS, CPMI and FSB has welcom ed as one of the industry initiatives that will help to address the decline in the num ber of correspondent banking relationships by facilitating due diligence processes.

4 Update on Fintech & Regtech Initiatives-FATF in February considered a r epor t on t h e AM L/ CFT r isk s associat ed w it h vir t u al cu r r en cies and the regulatory m easures being taken in different countries. The im proved understanding of the m isuse and risk of virtual currencies will lead to FATF undertaking additional work stream FATF Plenary also heard presentations from som e of its m em ber countries concerning the Fin Tech an d RegTech in it iat ives they were im plem enting. To support financial innovation that is resilient to ML/ TF, t h e FATF also lau n ch ed a n ew Fin t ech / Regt ech plat f or m to share governm ent Fintech initiatives and developm 2018 Private Sector Consultative Forum (PSCF)-The FATFs upcom ing PSCF will take place on 23 an d 24 Apr il 2018 at t h e UN ODC in Vien n a, Au st r ia.

5 Topics for discussion include: AML/ CFT global priorities for 2018, Fintech/ Regtech, and de-risking. Participation by invitation FATF identifies jurisdictions with st r at egic AM L/ CFT def icien cies in the following public docum ents issued three tim es a year: FATF Public Statement (call for action) and Improving Global AML/CFT Compliance: on-going Process (other m onitored jurisdictions). For M or e In f or m at ionHigh-risk and other m onitored jurisdictionsRecent updates include:-Bosn ia an d Her zegovin a will no longer be subject to the FATF?s m onitoring under its on-going global AML/ CFT com pliance process, and will work with the MONEYVAL as it continues to further strengthen its AML/ CFT regim February 2018, Ser bia m ade a high-level political com m itm ent to work with the FATF and MONEYVAL to strengthen the effectiveness of its AML/ CFT regim e.

6 Serbia will now be subject to FATF's m onitoring under its on-going global AML/ CFT com pliance process. -The FATF decided to con t in u e t h e su spen sion of cou n t er -m easu r es on Ir an . Depending on Iran's progress in com pleting its action plan, the FATF will take further steps in June 2018. you f in d t h e Bu llet in u sef u l? Give u s you r f eedback via ou r FATF on lin e su r vey.