Notices from the Registrar
Call for Action in Accordance with June 2023 FATF Statement
10 July 2023
Regulated dealers must apply enhanced customer due diligence for transactions linked to high-risk jurisdictions. Review the latest FATF statements and updated monitoring list to stay compliant.
Action by regulated dealers against high-risk jurisdictions
Dear Regulated Dealer,
The Registrar of Regulated Dealers hereby notifies all regulated dealers that the Financial Action Task Force (“FATF”) has issued statements dated 23 June 2023 on:
Counter-measures1 against the Democratic People’s Republic of Korea (“DPRK”) and Iran;
Enhanced due diligence measures against Myanmar; and
List of Jurisdictions under Increased Monitoring.
Accordingly, under regulation 7(1) of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations 2020 ("PMLTF Regulations"), regulated dealers must perform enhanced customer due diligence ("ECDD") measures if:
The customer, or the person on whose behalf the customer is acting on, is from or in DPRK, Iran, Myanmar, or a foreign country or territory identified to have inadequate measures to prevent money laundering or terorrism financing; or
The transaction relates to DPRK, Iran, Myanmar, or a foreign country or territory identified to have inadequate measures to prevent money laundering or terrorism financing.
Regulated dealers are also expected to take the List of Jurisdictions under Increased Monitoring into consideration when preparing their risk assessment and mitigation plans and perform ECDD measures, when necessary.
1Counter-measures should be effective and proportionate to the risk of money laundering and terrorism financing presented by the country concerned. Examples of counter-measures include:
- Limiting business relationships or transactions with the identified country or persons in that country.
- Requiring increased supervisory examination and/or external audit requirements for branches and subsidiaries of entities based in the country concerned.
- Requiring increased external audit requirements for groups with respect to any of their branches and subsidiaries located in the country concerned.
Table: Summary of issued FATF Statements
June 2023 FATF Statement: High-Risk Jurisdictions subject to a Call for Action On 23 June 2023, the FATF, of which Singapore is a member, issued a statement that highlights the strategic deficiencies in the anti-money laundering/combating the financing of terrorism (AML/CFT) regimes of the DPRK, Iran and Myanmar. While there was a pause in the review process for the DPRK and Iran and the statement may not necessarily reflect the most recent status for both jurisdictions, the FATF’s call for action on them remains in effect. The FATF calls on its members and urges all jurisdictions to apply effective counter-measures and targeted financial sanctions to protect the international financial system from the ongoing and substantial money laundering and terrorism financing risks. The FATF has also called on its members and other jurisdictions to apply enhanced due diligence measures against Myanmar given its lack of progress to address its strategic deficiencies. The FATF urges Myanmar to work and address its AML/CFT deficiencies and Myanmar will remain on the call for action list until its full action plan is completed. Full details can be found at: June 2023 FATF Statement: Jurisdictions under Increased Monitoring The FATF has also issued an updated statement in June 2023 on jurisdictions under increased monitoring. This statement provides information on a list of jurisdictions that have committed to action plans to address and strengthen their respective AML/CFT deficiencies. The latest list included Cameroon, Croatia and Vietnam. Jurisdiction with strategic deficiencies |
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