Four jurisdictions, including the Cayman Islands and Morocco, will undergo greater monitoring as they come under pressure from a global watchdog to address shortcomings in their efforts against money laundering.
The Financial Action Task Force, a Paris-based organization that sets anti-money laundering legislation, on Thursday added Burkina Faso, the Cayman Islands, Morocco and Senegal to its list of jurisdictions, including monitoring and joining 15 other countries. The shortcomings identified vary for each jurisdiction, but include maintaining comprehensive information on beneficial ownership and expanding the operations of countries’ financial intelligence units, according to FATF.
In a report, for example, the FATF said the Cayman Islands government should impose effective administrative fines and enforcement actions against entities involved in money laundering offenses, and impose adequate sanctions in cases where accurate and timely beneficial ownership information is not provided.
“The Cayman Islands are an important financial center; “We expect countries at higher risk, and we expect measures against these risks to be proportionate,” FATF President Marcus Pleyer told a virtual press conference on Thursday.
To be added to the so-called ‘gray list’ means that the four countries and territories will work with FATF on plans to address identified deficits in their governments against terrorist financing within agreed time frames and subject to additional controls, FATF said.
Pakistan, another country on the gray list, has made significant progress in improving its frameworks for combating illegal finance, including the fact that its law enforcement agencies identify terrorist financing activities and investigate and enforce actions against financial sanctions violations. said FATF in a report. But Pakistan will remain on the list for increased monitoring; according to FATF, the country still has to deal with shortcomings related to terrorist financing.
The Cayman Islands Monetary Authority and the Washington embassies for Morocco, Senegal and Pakistan did not immediately respond to requests for comment.
The FATF, which evaluates anti-money laundering and terrorist financing legislation in 205 jurisdictions around the world, said the Covid-19 pandemic affected its evaluation of countries, delaying some of the assessments on the ground.
“The FATF continues to monitor the risks of money laundering and terrorist financing associated with Covid-19 financial crimes,” he said. Pleyer said.
However, the organization was able to mutually evaluate a report on New Zealand, said Mr. Pleyer said. After 14 months of work, the watchdog has found that New Zealand’s measures to combat money laundering and terrorist financing are doing well, especially in the areas of confiscation and recovery of criminal proceeds and international cooperation. However, according to FATF, the country needs to focus on improving the availability of beneficial information about ownership.
FATF also plans to release an update on its 2019 guideline on cryptocurrency regulations. Current guidance requires countries to adopt regulations requiring companies with virtual currencies – including wallets and wallet providers – to collect information about their customers and share it with other institutions, including other crypto-enterprises, that receive fund transfers.
The organization said that although the public and private sectors have made progress in implementing the necessary measures related to cryptocurrency, it has also revealed the need for guidance to address specific areas. FATF plans to publish the draft for public consultation in March and expects to approve the final guidance in June.
“We welcome the FATF’s efforts to improve operational efforts designed to identify terrorist financiers and to develop additional guidance in consultation with the private sector on virtual assets and finance distribution, two key priorities of the United States,” he said. Finance Minister Janet Yellen said in a statement on Thursday. .
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