Deficiencies with AML/CFT standards and measures to be taken
Registered diamond dealers must apply enhanced customer due diligence measures when customers are domiciled, established, have any other links or are involved in a transaction or a business relationship in one of the following 13 jurisdictions: Iran, Democratic People’s Republic of Korea, Algeria, Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Pakistan, Syria, Tanzania, Turkey and Yemen.
In its public statement of October 18th, the FATF has identified 13 jurisdictions that pose a significant risk to the international financial system due to their lack of a comprehensive AML / CFT regime, among which two jurisdictions for which the FATF furthermore requires taking countermeasures (Iran and the Democratic People’s Republic of Korea).
This statements means that the diamond dealers, subject to the Law of 11th January 1993 (the anti-money laundering law) must apply enhanced customer due diligence measures with respect to the transactions with customers who are domiciled or are established in any of these countries, or are in any way involved herewith.
Furthermore, as part of its ongoing review of compliance with the AML / CFT standards, the FATF has to date identified the certain jurisdictions which 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 these following countries, when making their risk assessment: Afghanistan, Albania, , Angola, Antigua en Barbuda, Argentina, Bangladesh, Cambodia, Cuba, Iraq, Kyrgyzstan, Kuwait, Laos, Mongolia, Namibia, Nepal, Nicaragua, Sudan, Tajikistan, Vietnam, Zimbabwe.
The complete announcement can be found here.
For further details on the deficiencies of each of these jurisdictions, please refer tot his document.
