25 February 2003

Dear Sir / Madam,

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

Further to my letter of 27 December 2002, I am writing to advise you that the FATF has decided at its February 2003 Plenary meeting to withdraw the application of counter-measures against Ukraine. This is the result of the country’s recent enactment of comprehensive legislation that addresses the main deficiencies identified by the FATF earlier. Notwithstanding this, Ukraine still remains on the list of NCCTs.

The FATF has previously called on its members to apply counter-measures to Nauru. In view of the lack of progress by the jurisdiction to address the identified deficiencies, this approach should continue. In other words, Nauru is now the only jurisdiction subject to counter-measures.

In respect of the Philippines, the FATF has recommended members to apply counter-measures as of 15 March 2003 unless the Philippines Government enacts appropriate legislative amendments to address the previously identified deficiencies by that date. We would keep you informed of the developments and the specific counter-measures to be applied in due course, if this is necessary.

In the February Plenary, the FATF has also decided to remove Grenada from the NCCT list because Grenada has implemented significant reforms to its anti-money laundering regime. The updated list of NCCTs is now as follows:

Institutions are therefore reminded to give special attention to businesses and transactions with persons, including companies and financial institutions, from these remaining 10 NCCTs in accordance with Recommendation 21 of the FATF Forty Recommendations.

A copy of the FATF press release of 14 February 2003 setting out the NCCT review results and issues discussed in the February Plenary is attached for your reference.

Raymond Li
Executive Director (Banking Development)