FATF cautions against business with North Korea, Iran

The Financial Action Task Force (FATF) has identified nine countries as posing risks to the global financial system. The intergovernmental group notes that the named nations are not taking sufficient measures to combat terrorist financing, as well as money laundering.

In particular, the FATF has identified Iran and North Korea as high-risk, warranting a “call to action.” As such, the organization has urged its global members to take extra precautions against threats posed by these jurisdictions.
The group recommends that its member countries advise their financial institutions to carefully scrutinize any transactions with Iran and North Korea. According to the FATF, this action has come despite Iran’s commitment in June 2016 to an “action plan” to address “deficiencies” in its money-laundering and terrorist-financing policies.

“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,” asserts the FATF.

What’s more, the organization has expressed concerns about North Korea’s failure to address “significant deficiencies” in its policies to prevent money laundering and terrorist funding, as well. With this in mind, the FATF encourages member countries to use counter-measures such as sanctions to protect their financial sectors from those risks.
The FATF is also monitoring Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Uganda, Vanuatu and Yemen. If you conduct business with organizations in any of these jurisdictions, visit fatf-gafi.org for more information.


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