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Financial Institutions Urged to Take Action Against Money Laundering and Terrorist Financing Risks

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) is reminding U.S. financial institutions to take additional measures to protect the international financial system from money laundering and terrorist financing risks.

FATF Call for Countermeasures

According to FinCEN, financial institutions are subject to a call from the Financial Action Task Force (FATF) to apply countermeasures to address AML/CTF risks associated with Iran and North Korea. U.S. financial institutions should consult existing guidance on engaging in financial transactions with these countries, which are subject to broad range of restrictions and prohibitions.

Jurisdictions with Strategic AML/CFT Deficiencies

The FATF has identified several jurisdictions as having strategic AML/CTF deficiencies, including:

  • Algeria
  • Ecuador
  • Indonesia
  • Myanmar

As a result, FinCEN is advising U.S. financial institutions to apply enhanced due diligence when maintaining correspondent accounts for foreign banks operating under banking licenses issued by these countries.

General Due Diligence Requirements

Financial institutions are also reminded of their obligations to comply with general due diligence requirements when dealing with jurisdictions listed in Section II of the advisory, including:

  • Afghanistan
  • Albania
  • Angola
  • Others

FinCEN’s Mission and Action Items

FinCEN is urging financial institutions to consider the risks associated with AML/CTF deficiencies in these jurisdictions and to take appropriate measures to detect and report known or suspected money laundering activity.

“FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities,” said FinCEN Director Kenneth A. Blanco.

Financial institutions are encouraged to contact FinCEN’s Resource Center with any questions or comments regarding the advisory. They can also report suspicious transactions related to terrorist activity by calling the Financial Institutions Toll-Free Hotline at (866) 556-3974.

Sources

  • U.S. Department of the Treasury
  • Financial Action Task Force (FATF)
  • Financial Crimes Enforcement Network (FinCEN)

Contact

For more information, please contact FinCEN’s Resource Center at 703-905-3591 or visit www.fincen.gov.