Oct 30 2009 Brett Wolf
The Financial Crimes Enforcement Network has issued an advisory to remind US financial institutions of the money laundering and terrorist financing risks associated with Iran, Uzbekistan, Turkmenistan, Pakistan, and Sao Tome and Principe. FinCEN previously warned US financial institutions of the risks associated with these jurisdictions on July 10.
According to FinCEN, it needed to update its warning due to a statement the Financial Action Task Force issued on October 16. That statement outlined FATF's concerns regarding each of the jurisdictions in question and called for action on the part of its members.
"The FATF remains particularly concerned about Iran's failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system," the Paris-based AML/CFT body stated.
Based on FATF's newest statement, FinCEN reminded US financial institutions to ensure that their due diligence programs properly address the risks associated with correspondent accounts maintained for foreign financial institutions.
"Consistent with the FATF statement noted above, banks and other financial institutions operating in the United States should consider the risks associated with deficiencies in the AML/CFT regimes of Iran, Uzbekistan, Turkmenistan, Pakistan, and Sao Tome and Principe," FinCEN stated.
The FinCEN advisory is available here.
