CFATF Public Statement- Public Statement No. 10 of 2014 (5 November 2014)

Public Statement No. 10 of 2014

5 November, 2014

PUBLIC STATEMENT

 CFATF PUBLIC STATEMENT

Tortola, British Virgin Islands – 5 November, 2014 - On 29 May, 2014 the Caribbean Financial Action Task Force (CFATF) issued a public statement identifying Guyana as a jurisdiction with strategic AML/CFT deficiencies that has not made sufficient progress in addressing the deficiencies or has not complied with the Action Plan developed with the CFATF to address these deficiencies. The public statement, which is reproduced below and is available in original form on the CFATF website, was issued as an update to the CFATF statements previously issued in May 2013 and November 2013. The updated statement also identified Belize as a jurisdiction with strategic AML/CFT deficiencies that has made significant progress in addressing these deficiencies.

The British Virgin Islands Financial Services Commission (the “FSC”) wishes to advise the general public, including all regulated and other persons who are required to comply with the requirements of the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008, to note the concerns expressed by the CFATF with respect to the named jurisdictions and consider the money laundering and/or terrorist financing risks associated and apply appropriate or enhanced customer due diligence measures when dealing with customers or transactions involving any of the jurisdictions that have been identified by the updated CFATF public statement.

The CFATF statement of 29 May, 2014 is reproduced in full below:

ANNEX 1: CFATF PUBLIC STATEMENT

CFATF PUBLIC STATEMENT – 29 May 2014

Miami, Florida, May 29th, 2014 - The Caribbean Financial Action Task Force (CFATF) is an organisation of twenty-seven jurisdictions of the Caribbean Basin Region, which have agreed to implement the international standards for Anti-money Laundering and Combating the Financing of Terrorism (AML/CFT), Financial Action Task Force Recommendations (FATF Recommendations). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the CFATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

 Jurisdiction with strategic AML/CFT deficiencies that has not made sufficient progress in addressing the deficiencies or has not complied with the Action Plan developed with the CFATF to address these deficiencies. The CFATF calls on its Members to consider implementing further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana, as described below.

Guyana

As a result of not meeting the agreed timelines in its Action Plan, the CFATF recognises Guyana as a jurisdiction with significant AML/CFT deficiencies, which has failed to make significant progress in addressing those deficiencies and the CFATF considers Guyana to be a risk to the international financial system. Members are therefore called upon to implement further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana. Also, the CFATF has referred Guyana to the FATF.

As approved during its XXXIX Plenary Meeting, the CFATF referred Guyana to the FATF in June 2014. The FATF has accepted CFATF's referral of Guyana.

Countermeasures could entail, among others, the requirement of enhanced due diligence measures; introducing enhanced reporting mechanisms or systematic reporting of financial transactions; refusing the establishment of subsidiaries or branches or representative offices in the country concerned, or otherwise taking into account the fact that the relevant financial institution is from a country that does not have adequate AML/CFT systems and limiting the business relationships or financial transactions with the identified country or persons in that country.

BACKGROUND INFORMATION

In November 2011 the CFATF brought to the attention of its Members certain jurisdictions including Guyana with significant strategic deficiencies in their AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies Guyana and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Guyana’s national architecture to combat money laundering and the financing of terrorism.

The CFATF issued a public statement in May 2013 recommending that Guyana took steps to ensure that it addressed its AML/CFT deficiencies. Additionally, in November 2013 CFATF issued a further public statement calling upon its Members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana. Guyana has failed to pass the relevant legislation necessary for it to significantly improve its AML/CFT regime and therefore has not substantially addressed the outstanding deficiencies from its mutual evaluation report. The CFATF urges Guyana to urgently, immediately and meaningfully address its AML/CFT deficiencies, in particular by: 1) fully criminalising money laundering and terrorist financing offences, 2) addressing all the requirements on beneficial ownership, 3) strengthening the requirements for suspicious transaction reporting, international co-operation, and the freezing and confiscation of terrorist assets, and 4) fully implementing the UN conventions. Please refer to the 6th follow-up report on Guyana, available at:  http://www.cfatf-gafic-org for greater details.

Jurisdiction with strategic AML/CFT deficiencies that has made significant progress in addressing these deficiencies. 

Belize

CFATF required Belize to implement all the outstanding issues within its Action Plan including 1) addressing its customer due diligence requirements, 2) implementation of its CFT framework, 3) extension of the AML/CFT framework to DNFBPs, 4) addressing issues with the operational independence of the FIU and 5) prohibiting dealings with shell banks.  Belize has since brought into force significant mechanisms to address its AML/CFT deficiencies. Belize and the CFATF should continue to work together to ensure that Belize’s reform process is completed, by addressing its remaining deficiencies and continue implementing its Action Plan.

BACKGROUND INFORMATION

In November 2011 the CFATF brought to the attention of its Members certain jurisdictions including Belize with significant strategic deficiencies in its AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies Belize and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that existed in Belize’s national architecture to combat money laundering and the financing of terrorism.

The CFATF issued a public statement in May 2013 recommending that Belize enacted legislation and issued relevant guidelines addressing their AML/CFT deficiencies. Additionally, in November 2013 CFATF issued a further public statement calling upon its Members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Belize. Belize had made efforts to address its deficiencies, however, it had not taken sufficient steps towards improving its AML/CFT compliance regime, by failing to approve and implement required legislative reforms. Please refer to the 6th follow-up report on Belize, available at:  http://www.cfatf-gafic-org for greater details.

The following is a link to the CFATF website at https://www.cfatf-gafic.org for the updated CFATF Public Statement, dated 29 May, 2014:

https://www.cfatf-gafic.org/index.php?option=com_content&view=article&id...

British Virgin Islands Financial Services Commission

Pasea Estate, Tortola, British Virgin Islands

Telephone: (284) 494-4190

Facsimile: (284) 494-5016

E-mail: commissioner@bvifsc.vg

Website: www.bvifsc.vg

Hours: Monday - Friday 8:30 a.m. - 4:30 p.m.