Jurisdictions with strategic deficiencies with the AML/CFT standards as defined 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 11 jurisdictions or if they have any other links to these jurisdictions or if they are involved in a transaction or a business relationship in any capacity: Iran, Democratic People’s Republic of Korea, Algeria, Ecuador, Ethiopia, Indonesia, Myanmar, Pakistan, Syria, Turkey, Yemen.

In a public statement 14 February 2014 the FATF identified 11 jurisdictions that pose a significant risk to the international financial system due to their lack of a comprehensive AML/CFT regime. FATF singled out two jurisdictions, namely Iran and the Democratic People’s Republic of Korea, for which it requires members and other jurisdictions take counter-measures.

The statement means that diamond dealers, subject to the Law of 11 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 certain jurisdictions, which have strategic AML/ CFT deficiencies for which it has developed an action plan.

The diamond dealers are requested to take into account the specific risks linked to the following countries, when making their risk assessment:  Afghanistan, Albania, Angola, Argentina, Cuba, Cambodia, Iraq, Kenya, Kyrgyzstan, Kuwait, Laos, Mongolia, Namibia, Nepal, Nicaragua, Uganda, Papua New Guinea, Sudan, Tajikistan, Tanzania, Zimbabwe.

The full statement can be found here.