NIGER: Global AML and CFT Regulations Take Effect Amidst Shifting Landscape

Introduction

The Financial Action Task Force (FATF) has introduced new amendments to its lists of high-risk third countries aimed at strengthening anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts worldwide. Effective February 23, 2024, these updates have significant implications for jurisdictions around the globe.

Updates to FATF’s List of High-Risk Jurisdictions

The revised list now comprises 34 jurisdictions deemed to pose significant shortcomings in their AML, CFT, and counter-proliferation financing controls. The new additions include:

• Kenya
• Namibia

Countries removed from the list include:

• Barbados
• Gibraltar
• Uganda
• United Arab Emirates

Categories of High-Risk Jurisdictions

The FATF has categorized some countries as high-risk due to financial sanctions measures requiring firms to take additional steps. Others require onsite visits to verify the implementation of their action plans, with potential removal from the list at the next plenary meeting. Security issues have prevented onsite visits for a few jurisdictions.

HM Treasury’s Revised Definition

HM Treasury has also revised its definition of “high-risk third countries” in the Money Laundering Regulations 2017, effective January 22, 2024. The updated regulation now refers to the FATF’s lists of high-risk jurisdictions subject to a call for action and those under increased monitoring.

Frequency of Updates

The Financial Action Task Force updates these lists three times a year, typically on February, June, and October plenary meetings. The next update is expected on June 28, 2024.

UK’s AML Regime

Under the UK’s AML regime, business relationships with individuals established in high-risk third countries must undergo enhanced due diligence (EDD). The list of high-risk countries was previously determined by the European Union but has been replaced by the UK’s standalone list since January 1, 2021.

Key Takeaways

• The revised FATF list includes 34 jurisdictions deemed to pose significant shortcomings in their AML, CFT, and counter-proliferation financing controls.
• Kenya and Namibia have been added to the list, while Barbados, Gibraltar, Uganda, and the United Arab Emirates were removed.
• The UK’s AML regime requires enhanced due diligence for business relationships with individuals established in high-risk third countries.