NOTICE
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The Commission hereby advises that Peken Global Limited dba KuCoin Crypto Exchange is not licensed, registered or otherwise authorised to carry out virtual asset activities in or from within the TCI.
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This Public Notified issued by the Turks and Caicos Islands Financial Services Commission refers to specific Public Statements issued by the Financial Action Task Force (FATF) dated 23rd, February 2018. The FATF is an inter-governmental policy making body whose objectives is to set AML/CFT standards and to promote effective implementations of legal, regulatory and operational measures to combat ML/TF and other threats to the integrity of the global financial system.
The FATF produces public documents as required providing warnings, calls for action and information. The Financial Services Commission wishes to advise the general public, including all regulated, supervised, and other persons who are required to comply with the requirements of the Anti-Money Laundering and Prevention of Terrorist Financing Regulations, 2010 (as amended) and the Anti-Money Laundering and Prevention of Terrorist Financing Code 2011, to note the concerns expressed by the FATF with respect to the jurisdictions named in this Public Notice.
When evaluating country risk, relevant persons must consider the money laundering and/or terrorist financing risks associated with each jurisdiction 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 23rd February FATF Public Statement. All regulated and other persons must continue to monitor these periodic statements issued by the FATF as well as the other sanctions and counter-measures applied by bodies such as the European Union, the United Nations, the United Kingdom and the United States Department of the Treasury, the Office of Foreign Assets of Control (OFAC).
Updates of such measures are also periodically made available on the Commission’s Website on the Sanctions tab. However, it should be noted that the most current information can be obtained directly from the body issuing the statement or counter measure.
Regulated and supervised persons should be able to advise the Commission if they have any dealings with the above stated countries and to provide information on the level of enhanced due diligence adopted in relation to these countries, including business relationships with persons or entities.
FATF PUBLIC STATEMENT Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the DPRK. Democratic People’s Republic of Korea (DPRK) The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threats they pose to the integrity of the international financial system.
The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies. Further, FATF has serious concerns with the threat posed by DPRK’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing. The FATF reaffirms its 25 February 2011 call on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the DPRK, including DPRK companies, financial institutions and those acting on their behalf. In addition to enhanced scrutiny, the FATF further calls on its members and urges all jurisdictions to apply effective countermeasures, and targeted financial sanctions in accordance with applicable United Nations Security Council Resolutions, to protect their financial sectors from money laundering, financing of terrorism and WMD proliferation financing (ML/FT/PF) risks emanating from the DPRK.
Jurisdictions should take necessary measures to close existing branches, subsidiaries and representative offices of DPRK banks within their territories and terminate correspondent relationships with DPRK banks, where required by relevant UNSC Resolutions. Jurisdictions 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
In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan.Given that Iran provided that political commitment and the relevant steps it has taken, the FATF decided in November 2017 to continue the suspension of counter-measures. Since November 2017, Iran has established a cash declaration regime and introduced draft amendments to its AML and CFT laws. However, Iran’s action plan has now expired with a majority of the action items remaining incomplete.
Iran should fully address its remaining action items, including by:
Given that Iran has draft legislation currently before Parliament, the FATF decided at its meeting this week to continue the suspension of counter-measures. Depending upon Iran’s progress in completing its action plan, the FATF will take further steps in June 2018. The FATF urgently expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items in its Action Plan by completing and implementing the necessary AML/CFT reforms, in particular passing the necessary legislation.
Iran will remain on the FATF Public Statement until the full Action Plan has been completed. Until Iran implements the measures required to address the deficiencies identified in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system. The FATF, therefore, calls on its members and urges all jurisdictions to continue to advise their financial institutions to apply enhanced due diligence to business relationships and transactions with natural and legal persons from Iran, consistent with FATF Recommendation 19.
On-going Process Paris, France, 23 February 2018 – As part of its on-going review of compliance with the AML/CFT standards, the FATF identifies the following jurisdictions that have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. The FATF welcomes these commitments. A number of jurisdictions have not yet been reviewed by the FATF. The FATF continues to identify additional jurisdictions, on an on-going basis, that pose a risk to the international financial system.
The FATF and the FATF-style regional bodies (FSRBs) will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The FATF calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The FATF will closely monitor the implementation of these action plans and encourages its members to consider the information presented below. Jurisdictions with strategic deficiencies Jurisdictions no longer subject to the FATF’s on-going global AML/CFT compliance process.
Ethiopia Iraq Serbia Sri Lanka Syria Trinidad and Tobago Tunisia Vanuatu Yemen Bosnia and Herzegovina Ethiopia Since February 2017, when Ethiopia made a high-level political commitment to work with the FATF and ESAAMLG to strengthen its effectiveness and address any related technical deficiencies, Ethiopia has taken steps towards improving its AML/CFT regime, including by conducting awareness-raising trainings for its DNFBPs, regulatory bodies, and investigative bodies and disseminating the UN sanctions lists to obliged entities without delay.
Ethiopia should continue to work on implementing its action plan to address its deficiencies, including by:
Since October 2013, when Iraq made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies,
Iraq has substantially addressed its action plan at a technical level, including by:
In February 2018, Serbia made a high-level political commitment to work with the FATF and MONEYVAL to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies.
Serbia will work to implement its action plan to accomplish these objectives, including by:
Since November 2017, when Sri Lanka made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies, Sri Lanka has taken steps towards improving its AML/CFT regime, including by issuing CDD rules for DNFBPs.
Sri Lanka should continue to work on implementing its action plan to address its deficiencies, including by:
Since February 2010, when Syria made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, Syria has made progress to improve its AML/CFT regime. In June 2014, the FATF determined that Syria had substantially addressed its action plan at a technical level, including by criminalising terrorist financing and establishing procedures for freezing terrorist assets. While the FATF determined that Syria has completed its agreed action plan, due to the security situation, the FATF has been unable to conduct an on-site visit to confirm whether the process of implementing the required reforms and actions has begun and is being sustained. The FATF will continue to monitor the situation, and will conduct an on-site visit at the earliest possible date.
Since November 2017, when Trinidad and Tobago made a high-level political commitment to work with the FATF and CFATF to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies, Trinidad and Tobago has taken steps towards improving its AML/CFT regime, including the approval of the Counter Terrorism Strategy by the National Security Council, the issuance of a Case Prioritization Policy, and advancing legislation in a number of areas.
Trinidad and Tobago should continue to work on implementing its action plan to address its deficiencies, including by:
Since November 2017, when Tunisia made a high-level political commitment to work with the FATF and MENAFATF to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies, Tunisia has taken steps towards improving its AML/CFT regime, including by issuing a decree to implement terrorism-related targeted financial sanctions, preparing AML/CFT supervisory manuals, conducting trainings on AML/CFT supervision for the relevant authorities and increasing human resources within the financial intelligence unit.
Tunisia should continue to work on implementing its action plan to address its deficiencies, including by:
Since February 2016, when Vanuatu made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies,
Vanuatu has substantially addressed its action plan at a technical level, including by:
Since February 2010, when Yemen made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies,Yemen has made progress to improve its AML/CFT regime.
In June 2014, the FATF determined that Yemen had substantially addressed its action plan at a technical level, including by:
Jurisdictions No Longer Subject to the FATF’s On-Going Global AML/CFT Compliance Process Bosnia and Herzegovina The FATF welcomes Bosnia and Herzegovina’s significant progress in improving its AML/CFT regime and notes that Bosnia and Herzegovina has established the legal and regulatory framework to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2015. Bosnia and Herzegovina is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Bosnia and Herzegovina will work with MONEYVAL to improve its AML/CFT framework.
A copy of the FATF Statement “Improving Global AML/CFT Compliance: On-going Process” which includes commentary on each of the countries mentioned can be accessed by the link:
Paul Coleman AML Supervision Department Turks and Caicos Islands Financial Services Commission. March 2018