February 2023 FATF statement
The Financial Action Task Force (FATF) has continued to pause the review process for the Democratic People’s Republic of Korea (DPRK) and Iran in light of the COVID-19 pandemic and given that the DPRK and Iran are already in the list of “High-Risk Jurisdictions subject to a Call for Action”. As such, financial institutions in Singapore (FIs) should continue to refer to the previous FATF Statement issued in February 2020, which highlighted the strategic deficiencies in the anti-money laundering and countering the financing of terrorism (AML/CFT) regimes of the DPRK and Iran. While the FATF Statement may not reflect the most recent status of the DPRK’s and Iran’s AML/CFT regimes, the FATF’s call for action against these two high-risk jurisdictions remains in effect:
On the DPRK, the FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its AML/CFT regime and the serious threats they pose to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies. Further, the FATF has serious concerns about the threat posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction and its financing. The DPRK is subject to the FATF’s call on all jurisdictions to apply countermeasures, and all FIs are to give special attention to business relationships and transactions with links, whether directly or indirectly, to the DPRK. FIs should consider the DPRK a high-risk jurisdiction and apply enhanced due diligence measures accordingly. FIs should also continue to comply with the requirements in the MAS (Sanctions and Freezing of Assets of Persons – DPRK) Regulations 2016, and apply appropriate risk mitigation measures taking into account relevant guidance provided by MAS.