The Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF) recently issued a public statement at the conclusion of its plenary meeting which was held on the 21st – 22nd June 2023.
The statement advised all member jurisdictions to be cautious of recent and emerging risks from the evasion of measures taken against the Russian Federation to protect the international financial system. The FATF noted that the Russian Federation’s war of aggression against Ukraine continues to contradict FATF’s principles and thus the suspension of the membership of the Russian Federation subsists. The FATF also identified additional countries, on an ongoing basis, that have strategic deficiencies in their AML/CFT/CPF regimes.
Why does this matter?
Members of FATF are required to advise their financial institutions to desist from engaging in transactions with financial institutions in these countries or to ensure that measures are in place to monitor those transactions by applying enhanced due diligence and counter-measures to protect the international financial system from the money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country.
More detailed information can be accessed at: https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-june-2023.html
See also Nigeria’s Central Bank issues advisory on transactions with countries such as Cameroon, Vietnam, and Croatia https://www.cbn.gov.ng/Out/2023/FPRD/FATF%20PUBLIC%20STATEMENT%20TO%20BANKS%20AND%20OFIS.pdf