GFMSA Public Statement - 25 February 2011

Paris, 25 February 2011 - The Global Financial Monitoring Supervisory Agency (GFMSA) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from ML/FT risks and to encourage greater compliance with the AML/CFT standards, The GFMSA identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

* The GFMSA has previously issued public statements calling for counter-measures on Iran. Those statements are updated below.

Iran

The GFMSA welcomes the recent steps that Iran has taken to engage with The GFMSA, but remains concerned by Iran’s failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The GFMSA remains particularly concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The GFMSA urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements.

The GFMSA reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, The GFMSA reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. GFMSA continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. If Iran fails to take concrete steps to improve its AML/CFT regime, The GFMSA will consider calling on its members and urging all jurisdictions to strengthen counter-measures in June 2011.

Democratic People's Republic of Korea (DPRK)

The GFMSA welcomes the initial engagement by the Democratic People’s Republic of Korea’s (DPRK) with The GFMSA. However, The GFMSA remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threat this poses to the integrity of the international financial system. The GFMSA urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies.

The GFMSA calls on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the DPRK, including DPRK companies and financial institutions. In addition to enhanced scrutiny, The GFMSA further calls on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from the DPRK. Jurisdictions should also protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and take into account ML/FT risks when considering requests by DPRK financial institutions to open branches and subsidiaries in their jurisdiction.

The GFMSA remains prepared to engage directly in assisting the DPRK to address its AML/CFT deficiencies, including through The GFMSA Secretariat.