Financial Crime World

Advisories and Guidance on Iran and DPRK Remain in Effect

Background

The Financial Crimes Enforcement Network (FinCEN) is reminding U.S. financial institutions to remain vigilant in their efforts to combat illicit financing risks associated with Iran and the Democratic People’s Republic of Korea (DPRK).

Restrictions and Prohibitions

U.S. financial institutions are subject to a range of restrictions and prohibitions due to the significant illicit financing risks posed by these countries. This includes:

  • Money laundering
  • Terrorist financing
  • Weapons of mass destruction proliferation financing

Guidance from FinCEN

FinCEN is advising financial institutions to:

  • Familiarize themselves with existing U.S. sanctions administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC)
  • Understand United Nations Security Council Resolutions (UNSCRs) against Iran and DPRK
  • Exercising vigilance over activities of financial institutions in their territories with Iranian or DPRK banks

Enhanced Due Diligence

FinCEN is urging financial institutions to apply enhanced due diligence when maintaining correspondent accounts for foreign banks operating under a banking license issued by jurisdictions identified as having strategic Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) deficiencies, including:

  • Algeria
  • Ecuador
  • Myanmar

Suspicious Activity Reports

Financial institutions are reminded that they have an obligation to file a Suspicious Activity Report if they know or suspect that a transaction involves funds derived from illegal activity or if a customer has engaged in activities indicative of money laundering, terrorist financing, or other violation of federal law or regulation.

Risk Assessment

FinCEN’s guidance emphasizes the importance of financial institutions understanding the risks associated with AML/CFT deficiencies in countries such as:

  • Afghanistan
  • Angola
  • Guyana
  • Indonesia
  • Iraq
  • Lao PDR
  • Panama
  • Papua New Guinea
  • Sudan
  • Syria
  • Uganda
  • Yemen

Financial institutions are advised to consider these risks when assessing their correspondent account relationships.

Additional Resources

Additional information on FinCEN’s guidance can be found at the agency’s website or by contacting the FinCEN Resource Center.