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:
- Democratic People’s Republic of Korea (DPRK)
subject to FinCEN enhanced due diligence requirements:
Improving Global AML/CFT Compliance: on-going process (also, subject to FinCEN enhanced due diligence):
- Lao PDR
- Papua New Guinea
Jurisdictions not making sufficient progress (also, subject to FinCEN enhanced due diligence):
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):
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.