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

Registered diamond dealers must apply enhanced customer due diligence measures if their customers are domiciled or established in one of the following 5 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, Ecuador and Myanmar.

In its public statement from 27 February 2015, the FATF identified 5 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 concerns the following countries: Iran, Democratic People’s Republic of Korea, Algeria, Ecuador and Myanmar.

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, Guyana, Indonesia, Iraq, Lao People’s Democratic Republic, Panama, Papua New Guinea, Sudan, Syria, Uganda, Yemen. 

The complete announcement can be found here.

For further details on the deficiencies of each of these jurisdictions, please refer to this document.