The Financial Action Task Force (FATF) has issued its latest update on countries with serious anti-money laundering and countering the financing of terrorism (AML/CFT) deficiencies. The Democratic People’s Republic of Korea (DPRK) and Iran remain on FATF’s list of “High-Risk Jurisdictions and subject to Call for Action” and are subject to countermeasures. Myanmar also remains a jurisdiction of concern, with enhanced due diligence requirements in place.

DPRK – Ongoing High Risk
The DPRK continues to show significant deficiencies in its AML/CFT regime and is involved in activities related to the proliferation of weapons of mass destruction (WMDs). FATF is concerned that DPRK has increased its links to the international financial system, which raises proliferation financing risks.

Financial Institutions (FIs) in Singapore should:

• Treat DPRK as a high-risk jurisdiction.
• Apply Enhanced Due Diligence (EDD) to all transactions connected to DPRK
• Comply with the Financial Services and Markets (Sanctions and Freezing of Assets of Persons – DPRK) Regulation 2023.

Iran – FATF Call for Countermeasures
Iran’s action plan to improve AML/CFT measures expired in January 2018. In February 2020, FATF confirmed that Iran had not completed the plan and had failed to enact both the Palermo Convention and the Terrorist Financing Convention in line with FATF Standards.

As a result, FATF lifted the suspension of countermeasures and called on all jurisdictions to apply effective countermeasures in accordance with Recommendation 19. Until the action plan is fully implemented, FATF remains concerned about the terrorism financing risks linked to Iran and the threat they pose to the international financial system.

Financial Institutions should:

• Consider Iran a high-risk jurisdiction.
• Apply EDD to all transactions and relationships involving Iran.
• Comply with the Financial Services and Markets (Sanctions and Freezing of Assets of Persons – Iran) Regulations 2023.

Myanmar – Enhanced Due Diligence Required
Since October 2022, the FATF has required all jurisdictions to apply enhanced due diligence (EDD) measures proportionate to the risks associated with Myanmar.

FATF has noted limited progress over the past five years since Myanmar’s action plan expired and has urged the country to complete its action plan to address deficiencies. Until this is achieved, Myanmar will remain on FATF’s call-for-action list.

Further, unlike DPRK and Iran, FATF has not called for full countermeasures against Myanmar.

Financial Institutions should:

• Apply EDD to higher-risk customers and transactions involving Myanmar.
• Remain alert to potential ML/TF risks.

Ensure flow of funds for humanitarian assistance, legitimate Non-Profit Organisation