Our Ref: B10/1C

11 December 2001

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

 

Financial Action Task Force on Money Laundering ("FATF") Non-cooperative Countries and Territories ("NCCTs")


We wrote to you on 29 September 2001, advising that the application of counter-measures against the Philippines should be suspended as a result of the passing of anti-money laundering legislation in the country. The FATF completed its assessment of the new law in the Philippines last month. It decided not to apply counter-measures to the country at this stage but that the situation should be closely reviewed at the next FATF Plenary Meeting in January/February 2002. We will keep you informed of any further development on this subject.

Notwithstanding the suspension of counter-measures, the Philippines is still included in the FATF list of NCCTs. Authorized institutions are therefore advised to continue to give special attention to businesses and transactions with persons, including companies and financial institutions, from the Philippines, in accordance with Recommendation 21 (Note) of the FATF Forty Recommendations.

We have also mentioned earlier that the FATF decided to postpone the application of counter-measures to Nauru until 30 November 2001, pending improvement to its new legislation on anti-money laundering. FATF has recently advised that it had received no evidence that Nauru had put in place the necessary legislative amendments. It has therefore called upon its members to apply counter-measures to Nauru with immediate effect.

In this connection, authorized institutions should adopt additional procedures in the opening and on-going monitoring of new accounts for customers from Nauru. Details of these additional procedures are attached at the Annex.

Opportunity is also taken to remind authorized institutions to include the subject of NCCTs in their staff training programme in respect of money laundering, with special emphasis on Nauru. Reference should be drawn from the websites of FATF, the Narcotics Division of the Security Bureau and the Joint Financial Intelligence Unit.

 

Yours faithfully

Raymond Li
Executive Director (Banking Development)

 

Note :Financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply these Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help supervisors, auditors and law enforcement agencies.

Encl.

 

Back to Top