FATF Removal Sparks Warning for Financial Institutions to Ramp Up Anti-Money Laundering Efforts

The Financial Crimes Enforcement Network (FinCEN) has issued an advisory urging financial institutions to heighten their anti-money laundering (AML) efforts in light of the recent removal of several jurisdictions from the Financial Action Task Force’s (FATF) listing and monitoring process.

Heightened Risk Assessment

According to the advisory, financial institutions should take into account the FATF’s decisions and the reasons behind delisting when assessing risk, consistent with their obligations under 31 C.F.R. §§ 1010.610(a) and 1010.210.

Importance of Suspicious Activity Reports (SARs)

The advisory also highlights the importance of SARs in identifying proliferation financing, money laundering, terrorist financing, and other financial crimes associated with foreign and domestic political corruption. FinCEN is requesting that financial institutions reference this advisory by including the key term “October 2020 FATF FIN-2020-A009” in SAR field 2 (Filing Institution Note to FinCEN) and the narrative.

About FinCEN

The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury, is responsible for safeguarding the financial system from illicit use, combating money laundering and its related crimes, including terrorism, and promoting national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.

Reporting Suspicious Transactions

Financial institutions are encouraged to report any suspicious transactions that may potentially relate to terrorist activity by calling the Financial Institutions Toll-Free Hotline at (866) 556-3974 or immediately reporting any imminent threat to local-area law enforcement officials.

Further Information

For further information on this advisory, please contact FinCEN’s Regulatory Support Section at frc@fincen.gov.