FATF Urges Countries to Address Anti-Money Laundering and Counter-Terrorism Financing Deficiencies

The Financial Action Task Force (FATF), an international organization that sets standards for combating money laundering, terrorist financing, and other illicit financial activities, has issued a statement urging several countries to make progress in addressing their anti-money laundering and counter-terrorism financing (AML/CFT) deficiencies.

Countries with Outstanding Deficiencies

South Sudan

South Sudan’s limited progress across its action plan has resulted in all deadlines now expired, with work remaining to be done. The organization encourages South Sudan to continue implementing its action plan to address strategic deficiencies as soon as possible, demonstrating strong political and institutional commitment to strengthen its AML/CFT regime.

Syria

Syria, which made a high-level political commitment to improve its AML/CFT regime in 2010, has made progress in improving its laws and regulations. However, the FATF is unable to conduct an on-site visit due to the security situation, and will continue to monitor the situation with the aim of conducting an assessment at the earliest possible date.

Tanzania

Tanzania, which committed to strengthening its AML/CFT regime in 2022, has taken steps towards improving its regime, including addressing technical deficiencies and conducting outreach to designated non-financial businesses and professions (DNFBPs). However, Tanzania still needs to implement its action plan to address strategic deficiencies, including improving risk-based supervision of financial institutions and DNFBPs.

Türkiye

Türkiye, which committed to strengthening its AML/CFT regime in 2021, has made positive steps towards improving its regime, including undertaking more complex money laundering investigations and prosecutions. However, Türkiye still needs to confiscate assets related to terrorist financing consistent with its terrorist financing risk.

Uganda

Uganda, which committed to strengthening its AML/CFT regime in 2020, has been found to have substantially completed its action plan by the FATF. The organization is now conducting an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place.

Importance of Implementing Action Plans

The FATF emphasized the importance of countries implementing their action plans to address strategic deficiencies in a timely manner, in order to strengthen the effectiveness of their AML/CFT regimes and prevent the misuse of financial systems for illicit purposes.