FinCrime News - February 2025

International

The Financial Action Task Force (FATF)

• Issued an updated list of the Jurisdictions under Increased Monitoring, also referred to as the "grey list." The Philippines was removed from the list, while Lao PDR and Nepal were added.
  Note: For the latest country risk ratings, see Country Risk Ratings Update.

• Published the latest list of High-Risk Jurisdictions subject to a Call for Action. The list remains unchanged and includes the Democratic People's Republic of Korea (DPRK) and Iran. It also lists Myanmar as a jurisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.

• Issued a second public consultation on Recommendation 16 on payment transparency. The recommended revisions include updates to Recommendation 16 (R.16), its Interpretive Note (INR.16) and the related Glossary of specific terms, to adapt them to the changes in payment business models and messaging standards. Feedback must be submitted by 18 April 2025.

• Announced updates to its Standards to better promote financial inclusion. The changes to the Standards include updates to Recommendation 1 and its Interpretive Note, with corresponding amendments to Interpretive Notes to Recommendations 10 and 15, as well as related Glossary definitions.

• Issued a public consultation on AML/CFT and financial inclusion to assist with the update to the FATF Guidance on financial inclusion. This is part of FATF’s work programme to address the unintended consequences of AML/CFT measures. FATF is inviting views and comments on the updated Guidance from interested stakeholders. Feedback must be submitted by 4 Apr 2025.

• Issued a public consultation on complex proliferation financing and sanctions evasion schemes to assist in an upcoming report. FATF seeks input on best practices in mitigating PF risk and sanctions evasion. Responses must be submitted by 21 Mar 2025.

United Kingdom

Office of Financial Sanctions Implementation (OFSI)

• Published its Financial Services Threat Assessment. This publication is one in a series of sector-specific assessments by the OFSI addressing threats to compliance with UK financial sanctions. This assessment provides information on suspected sanctions breaches only and is intended to assist stakeholders with prioritisation as part of a risk-based approach to compliance.

Germany 

BaFin

• Published an article on ML prevention in the financial sector based on experience from on-site inspections. The financial sector has made progress in preventing ML and combating TF in past years, but there is still a need for improvement according to  BaFin’s inspections of the financial sector.  

Cyprus

Cyprus Securities and Exchange Commission

• Published guidance on maintaining effective and efficient sanctions screening systems, which includes the latest findings of an assessment on the effectiveness and efficiency of the sanctions screening systems used by regulated entities.

South Africa

Financial Intelligence Centre (FIC)

• Released guidance on compliance with the risk management and compliance programme (RMCP) requirements in Section 42 of the AML/CFT Act. The updates provide further guidance to boards of directors, senior management, or other persons or groups that exercise the highest level of authority in an accountable institution, who must approve the RMCP for their institution. 

Canada

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

• Published new guidance and a form to report terrorist and sanctioned property-related information. This guidance explains the requirement for all businesses subject to the AML/CFT Act to report terrorist and sanctioned property to FINTRAC.

United States

Financial Crimes Enforcement Network (FinCEN)

• Announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines.

British Virgin Islands

Financial Investigation Agency

• Published its 2025 AML/CFT/CPF Policy (2025 Policy) and 2025-2027 AML/CFT/CPF Strategy, which build on the 2020 Policy and Strategy. The 2025 Policy focuses on the four key areas of supervision, enforcement, promotion of cooperation and stakeholder awareness and outreach.
• Announced the release of three informative videos on Proliferation Financing (PF) and how to mitigate PF risk. The videos explain what PF is, provide examples of typologies and outline the responsibilities of supervised entities in mitigating PF risk, with a focus on ensuring ongoing monitoring, sanctions screening and proper reporting.
• Announced the publication of the updated Virgin Islands Sanctions Guidelines. The Virgin Islands Sanctions Guidelines have been updated to clarify reporting requirements under the newly established Virgin Islands Sanctions Unit (the SU) within the Attorney General’s Chambers.
• Issued a reminder to all licensees that the deadline for submitting AML/CFT returns (annual reports) for the 2024 reporting period is 31 March 2025.

Other Jurisdictions

No major updates this month.