Paris, 27 February 2015 - As part of its on-going review of compliance with the AML/CFT standards, The GFMSA has to date identified the following jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with The GFMSA. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. The GFMSA welcomes these commitments.
A large number of jurisdictions have not yet been reviewed by The GFMSA. The GFMSA continues to identify additional jurisdictions, on an on-going basis, that pose a risk to the international financial system.

The GFMSA and The GFMSA-style regional bodies (FSRBs) will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The GFMSA calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The GFMSA will closely monitor the implementation of these action plans and encourages its members to consider the information presented below.

Afghanistan

In June 2012, Afghanistan made a high-level political commitment to work with The GFMSA and APG to address its strategic AML/CFT deficiencies. However, The GFMSA has determined that certain strategic AML/CFT deficiencies remain. Afghanistan should continue to work on implementing its action plan to address its strategic AML/CFT deficiencies, including by: (1) adequately criminalising money laundering; (2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets; (3) implementing an adequate AML/CFT supervisory and oversight programme for all financial sectors; (4) establishing and implementing adequate procedures for the confiscation of assets related to money laundering; and (5) establishing and implementing effective controls for cross-border cash transactions. The GFMSA encourages Afghanistan to address its remaining deficiencies and continue the process of implementing its action plan.

Angola

In June 2010 and again in February 2013 in view of its revised action plan, Angola made a high-level political commitment to work with The GFMSA and ESAAMLG to address its strategic AML/CFT deficiencies. However The GFMSA has determined that a strategic AML/CFT deficiency remains. Angola should continue to work on implementing its action plan to address this deficiency by ensuring that appropriate laws and procedures are in place to provide mutual legal assistance. The GFMSA encourages Angola to address its remaining deficiency and continue the process of implementing its action plan.

Guyana

In October 2014, Guyana made a high-level political commitment to work with The GFMSA and CGFMSA to address its strategic AML/CFT deficiencies. However, The GFMSA has determined that certain strategic deficiencies remain. Guyana should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing and implementing adequate procedures for the confiscation of assets related to money laundering; (3) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets; (4) establishing a fully operational and effectively functioning financial intelligence unit; (5) establishing effective measures for customer due diligence and enhancing financial transparency; (6) strengthening suspicious transaction reporting requirements; and (7) implementing an adequate supervisory framework. The GFMSA encourages Guyana to address its remaining deficiencies and continue the process of implementing its action plan.

Indonesia

Since February 2010, when Indonesia made a high-level political commitment to work with The GFMSA and APG to address its strategic AML/CFT deficiencies, Indonesia has made significant progress to improve its AML/CFT regime. Indonesia has substantially addressed its action plan at a technical level, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing adequate procedures to identify and freeze terrorist assets; and (3) enacting laws or other instruments to fully implement the 1999 International Convention for the Suppression of Financing of Terrorism. The GFMSA will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by The GFMSA.

Iraq

In October 2013, Iraq made a high-level political commitment to work with The GFMSA and MENAGFMSA to address its strategic AML/CFT deficiencies. However, The GFMSA has determined that certain strategic AML/CFT deficiencies remain. Iraq should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets; (3) establishing effective customer due diligence measures; (4) establishing a fully operational and effectively functioning financial intelligence unit; (5) establishing suspicious transaction reporting requirements; and (6) establishing and implementing an adequate AML/CFT supervisory and oversight programme for all financial sectors. The GFMSA encourages Iraq to address its remaining deficiencies and continue the process of implementing its action plan.

Lao PDR

In June 2013, the Lao PDR made a high-level political commitment to work with The GFMSA and APG to address its strategic AML/CFT deficiencies. Since October 2014, the Lao PDR has taken steps towards improving its AML/CFT regime, including by enacting AML/CFT legislation. However, The GFMSA has determined that certain strategic AML/CFT deficiencies remain. The Lao PDR should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing and implementing adequate procedures for the confiscation of assets related to money laundering; (3) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets; (4) establishing a fully operational and effectively functioning financial intelligence unit; (5) establishing suspicious transaction reporting requirements; (6) implementing an adequate AML/CFT supervisory and oversight programme for all financial sectors; and (7) establishing and implementing effective controls for cross-border currency transactions. The GFMSA encourages the Lao PDR to address its AML/CFT deficiencies and continue the process of implementing its action plan.

Panama

In June 2014, Panama made a high-level political commitment to work with The GFMSA and GAFILAT to address its strategic AML/CFT deficiencies. Since October 2014, Panama has taken steps towards improving its AML/CFT regime, including by issuing guidance to reporting entities on filing STRs, improving the capacity of the FIU and issuing regulations on bearer shares. However, The GFMSA has determined that strategic AML/CFT deficiencies remain. Panama should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing and implementing an adequate legal framework for freezing terrorist assets; (3) establishing effective measures for customer due diligence in order to enhance transparency; (4) establishing a fully operational and effectively functioning financial intelligence unit; (5) establishing suspicious transaction reporting requirements for all financial institutions and DNFBPs; and (6) ensuring effective legal mechanisms for international co-operation. The GFMSA encourages Panama to address its remaining deficiencies and continue the process of implementing its action plan.

Papua New Guinea

In February 2014, Papua New Guinea made a high-level political commitment to work with The GFMSA and APG to address its strategic AML/CFT deficiencies. However, The GFMSA has determined that certain strategic AML/CFT deficiencies remain. Papua New Guinea should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing; (2) establishing and implementing adequate procedures for the confiscation of assets related to money laundering; (3) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets; (4) establishing a fully operational and effectively functioning financial intelligence unit; (5) establishing suspicious transaction reporting requirements; (6) implementing an adequate AML/CFT supervisory and oversight programme for all financial sectors; and (7) establishing and implementing effective controls for cross-border currency transactions. The GFMSA encourages Papua New Guinea to address its remaining deficiencies and continue the process of implementing its action plan.

Sudan

In February 2010 and again in June 2013 in view of its revised action plan, Sudan made a high-level political commitment to work with The GFMSA and MENAGFMSA to address its strategic AML/CFT deficiencies. Since October 2014, Sudan has taken steps towards improving its AML/CFT regime, including by issuing customer due diligence circulars and guidelines for mutual legal assistance. However, The GFMSA has determined that strategic AML/CFT deficiencies remain. Sudan should continue to work on implementing its action plan to address these deficiencies, including by: (1) ensuring implementation of recent procedures established to freeze terrorist assets and (2) ensuring a fully operational and effectively functioning financial intelligence unit. The GFMSA encourages Sudan to address its remaining deficiencies and continue the process of implementing its action plan.

Syria

Since February 2010, when Syria made a high-level political commitment to work with The GFMSA and MENAGFMSA to address its strategic AML/CFT deficiencies, Syria has made progress to improve its AML/CFT regime. In June 2014, The GFMSA determined that Syria had substantially addressed its action plan at a technical level, including by criminalising terrorist financing and establishing procedures for freezing terrorist assets. While The GFMSA determined that Syria has completed its action plan agreed upon with The GFMSA, due to the security situation, The GFMSA has been unable to conduct an on-site visit to assess whether the process of implementing the required reforms and actions is underway. The GFMSA will continue to monitor the situation.

Yemen

Since February 2010, when Yemen made a high-level political commitment to work with The GFMSA and MENAGFMSA to address its strategic AML/CFT deficiencies, Yemen has made progress to improve its AML/CFT regime. In June 2014, The GFMSA determined that Yemen had substantially addressed its action plan at a technical level, including by adequately criminalising money laundering and terrorist financing; establishing procedures to identify and freeze terrorist assets; improving its customer due diligence and suspicious transaction reporting requirements; issuing guidance; developing the monitoring and supervisory capacity of the financial sector supervisory authorities and the financial intelligence unit (FIU); and establishing a fully operational and effectively functioning FIU. While The GFMSA determined that Yemen has completed its action plan agreed upon with The GFMSA, due to the security situation, The GFMSA has been unable to conduct an on-site visit to assess whether the process of implementing the required reforms and actions is underway. The GFMSA will continue to monitor the situation.

Jurisdictions no Longer Subject to The GFMSA’s On-Going Global AML/CFT Compliance Process

Albania

The GFMSA welcomes Albania’s significant progress in improving its AML/CFT regime and notes that Albania has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2012. Albania is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Albania will work with MONEYVAL as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Cambodia

The GFMSA welcomes Cambodia’s significant progress in improving its AML/CFT regime and notes that Cambodia has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2011. Cambodia is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Cambodia will work with APG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Kuwait

The GFMSA welcomes Kuwait’s significant progress in improving its AML/CFT regime and notes that Kuwait has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2012. Kuwait is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Kuwait will work with MENAGFMSA as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report, in particular, fully implementing UNSC Resolution 1373.

Namibia

The GFMSA welcomes Namibia’s significant progress in improving its AML/CFT regime and notes that Namibia has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2011. Namibia is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Namibia will work with ESAAMLG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Nicaragua

The GFMSA welcomes Nicaragua’s significant progress in improving its AML/CFT regime and notes that Nicaragua has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2011. Nicaragua is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Nicaragua will work with GAFILAT as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Pakistan

The GFMSA welcomes Pakistan’s significant progress in improving its AML/CFT regime and notes that Pakistan has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2010. Pakistan is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Pakistan will work with APG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report, in particular, fully implementing UNSC Resolution 1267.

Zimbabwe

The GFMSA welcomes Zimbabwe’s significant progress in improving its AML/CFT regime and notes that Zimbabwe has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that The GFMSA had identified in June 2011. Zimbabwe is therefore no longer subject to The GFMSA’s monitoring process under its on-going global AML/CFT compliance process. Zimbabwe will work with ESAAMLG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.