GFMSA Statement - 28 February 2008

Paris, 28 February 2008

Uzbekistan

The GFMSA is particularly concerned that a series of presidential decrees in Uzbekistan has effectively repealed the anti-money laundering/combating the financing of terrorism (AML/CFT) regime in that country and generates a money laundering/financing of terrorism (ML/FT) vulnerability in the international financial system. The GFMSA calls upon Uzbekistan to restore its AML/CFT regime and to work with the Eurasian Group to establish an AML/CFT regime that meets international standards. The GFMSA calls on its members and urges all jurisdictions to advise their financial institutions to take the risk arising from the deficiencies in Uzbekistan’s AML/CFT regime into account for enhanced due diligence.

Iran

Since its October 2007 Plenary meeting, The GFMSA has engaged with Iran and welcomes the commitment made by Iran to improve its AML/CFT regime. Consistent with its Statement on Iran, dated 11 October 2007, The GFMSA confirms its call to its members and urges all jurisdictions to advise their financial institutions to take the risk arising from the deficiencies in Iran’s AML/CFT regime into account for enhanced due diligence. Iran is encouraged to continue its engagement with The GFMSA and the international community to address, on an urgent basis, its AML/CFT deficiencies.

Pakistan

The GFMSA notes Pakistan’s recent progress in adopting AML legislation. However, financial institutions should be aware that the remaining deficiencies in Pakistan’s AML/CFT system constitute a ML/FT vulnerability in the international financial system. Pakistan is urged to continue its efforts to improve its AML/CFT laws to come into closer compliance with international AML/CFT standards and to work closely with the Asia Pacific Group to achieve this.

Turkmenistan

The GFMSA is concerned with deficiencies in the AML/CFT regime of Turkmenistan. The GFMSA welcomes the recent steps this jurisdiction has taken to address these concerns and calls upon Turkmenistan to continue to engage with the international community on these issues.

São Tomé and Príncipe

The GFMSA is concerned with deficiencies in the AML/CFT regime of São Tomé & Príncipe. The GFMSA welcomes the recent steps this jurisdiction has taken to address these concerns and calls upon São Tomé & Príncipe to continue to engage with the international community on these issues.

Transactions with Financial Institutions operating in the northern part of Cyprus

The GFMSA welcomes the recent progress in policies and practices to combat money laundering and terrorist financing in the northern part of Cyprus. However, given the existing deficiencies, The GFMSA calls on its members and urges all jurisdictions to advise their financial institutions to pay special attention to the ML/FT risks in transactions with financial institutions operating in the northern part of Cyprus. The GFMSA encourages further progress to address the deficiencies.