14 November 2018
Circular No. 87/2018TO ALL ACCOUNTANTS
PUBLIC STATEMENT ISSUED BY THE FINANCIAL ACTION TASK FORCE (FATF) ON JURISDICTIONS HAVING STRATEGIC DEFICIENCIES IN THEIR ANTI-MONEY LAUNDERING AND COUNTER FINANCING FOR TERRORISM (AML/CFT)
Bank Negara Malaysia issued a notice on 25 October 2018 pursuant to section 83 of the AMLA, to inform the reporting institutions (RIs) on the recent Public Statement issued by the FATF on 19 October 2018 regarding jurisdictions having strategic deficiencies in their anti-money laundering and counter financing for terrorism (AML/CFT) regime.
In the statement, FATF called upon its members and other jurisdictions to apply effective countermeasures and targeted financial sanctions in accordance with applicable United Nations Security Council Resolutions against the Democratic People’s Republic of Korea (DPRK) arising from significant deficiencies in its AML/CFT regime and threats posed by DPRK’s illicit activities in relation to proliferation of weapons of mass destruction and its financing.
In accordance with the AML/CFT Policy Documents issued to the respective sectors, please be advised that RIs are required to conduct enhanced customer due diligence for business relationships and transactions with any person from DPRK including those acting on their behalf. In addition to enhanced CDD requirement, the RIs are also required to apply any relevant countermeasures proportionate to the risk, including limiting business relationship and financial transactions with DPRK or its person and terminating correspondent relationships with DPRK banks, where necessary.
The FATF continues the suspension on the call for countermeasures on Iran following its commitment and progress made to an agreed Action Plan. The FATF will continue to monitor the progress made by Iran. As such, countermeasures as stipulated under respective AML/CFT Policy Documents will continue not to be applicable. However, enhanced due diligence measures which are proportionate to the risk remain applicable to all business relationships and transactions with any person from Iran.
RIs should also consider other jurisdictions being monitored by FATF as having inadequate AML/CFT system for which they have developed an action plan with FATF as part of the RIs’ risk assessment process.
Please also note that the Bahamas, Botswana and Ghana have been included in FATF’s monitoring process due to their strategic counter-terrorist financing deficiencies.
Further information on the above-mentioned statements and other monitored jurisdictions is available at FATF’s website at
Please be guided accordingly.
DR. NURMAZILAH DATO’ MAHZAN
Chief Executive Officer