Global Financial Hubs Face Scrutiny for Money Laundering and Terrorist Financing
Introduction
The US government has released a comprehensive list of countries and jurisdictions that pose significant risks to global financial stability due to their lack of cooperation in combating money laundering and terrorist financing. This list aims to prevent the misuse of the global financial system for illegal activities.
State Sponsors of Terrorism
The list identifies 12 countries as “State Sponsors of Terrorism” for providing support to acts of international terrorism. These countries are:
- Iran
- North Korea
- Syria
- Cuba
- Sudan
- Venezuela
Offshore Financial Centers (OFCs)
Additionally, the list highlights 14 jurisdictions that have been designated as “Offshore Financial Centers” (OFCs) by the International Monetary Fund (IMF), due to their lack of transparency and cooperation in sharing financial information. These countries are:
- Bahamas
- Belize
- Bermuda
- British Virgin Islands
- Cayman Islands
- Cook Islands
- Dominica
- Liberia
- Marshall Islands
- Nauru
- Panama
- Samoa
Jurisdictions with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Deficiencies
The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has also identified several countries as having “strategic AML/CFT deficiencies”, including:
- Afghanistan
- Democratic Republic of Congo
- Guinea-Bissau
- Haiti
- Iran
- North Korea
- Pakistan
- Saudi Arabia
- Yemen
EU Blacklist
The European Union (EU) has established its own list of non-cooperative jurisdictions, known as the “EU Blacklist”, which currently includes 12 countries:
- American Samoa
- Anguilla
- Antigua and Barbuda
- Bahamas
- Barbados
- Bermuda
- Cayman Islands
- Dominica
- Grenada
- Panama
- Saint Lucia
- Vanuatu
FATF Designations
The Financial Action Task Force (FATF) has not designated any countries as “Non-Cooperative Countries or Territories” (NCCTs), but has identified several jurisdictions with AML/CFT deficiencies.
US Government Efforts
The US government’s efforts to combat money laundering and terrorist financing are aimed at preventing the misuse of the global financial system for illegal activities. The Treasury Department’s Office of Foreign Assets Control (OFAC) is responsible for enforcing sanctions against countries and individuals that engage in these illicit activities.
In a statement, the Treasury Department said: “The United States is committed to working with its international partners to combat money laundering and terrorist financing, and to preventing the misuse of the global financial system.”
Full List
The full list of jurisdictions can be found on the US Treasury Department’s website.