FinCEN sets enhanced due diligence against high risk countries

FinCEN is increasing its effort to fight money laundering and terrorist financing. It is doing it by setting higher risk-based due diligence requirements for financial service institutions. The requirements meet the standards set by FATF.

FinCEN also  provided a list of countries that these requirements will be applied to, though if the risk-based approach results in similarly high risk issues in other countries, financial institutions are required to use these due diligence measures as well. The countries are as follows:

http://www.undervaluedequity.com/Country-Risk-Ranking-System-How-I-Assess-My-Stock's-Country-Risk.html
image from Jeroen Snoeks
Sanctioned countries:

  • Iran
  • Democratic People’s Republic of Korea (DPRK)

subject to FinCEN enhanced due diligence requirements:

  • Algeria
  • Ecuador
  • Myanmar

Improving Global AML/CFT Compliance: on-going process (also, subject to FinCEN enhanced due diligence):

  • Afghanistan
  • Angola
  • Guyana
  • Indonesia
  • Iraq
  • Lao PDR
  • Panama
  • Papua New Guinea
  • Sudan
  • Syria
  • Yemen

Jurisdictions not making sufficient progress (also, subject to FinCEN enhanced due diligence):

  • Uganda

Jurisdictions no longer subject to listing and monitoring (FinCEN recommends that financial institutions take the FATF’s decisions and the reasons behind the delisting into consideration when assessing risk):

  • Albania
  • Cambodia
  • Kuwait
  • Namibia
  • Nicaragua
  • Pakistan
  • Zimbabwe

About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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