What does the Financial Action Task Force (FATF) urge its members and all other jurisdictions to do when a jurisdiction is identified as having lax anti-money laundering / counter financing of…

Question

Options

• AApply counter-measures to that jurisdiction
• BConsider customers from that jurisdiction as high risk
• CCease doing business with that jurisdiction immediately
• DApply economic sanctions until otherwise notified by FATF

• A
  84% (36)
• B
  9% (4)
• C
  2% (1)
• D
  5% (2)

Explanation

The FATF is an inter-governmental body that sets standards and promotes effective implementation of legal, regulatory and operational measures to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF identifies jurisdictions with serious strategic deficiencies in their anti-money laundering / counter financing of terrorism (AML/CFT) regimes and issues public statements to warn the international community of the risks emanating from these jurisdictions. These jurisdictions are also known as high-risk jurisdictions subject to a call for action, or the "black list" in external sources. The FATF urges its members and all other jurisdictions to apply counter-measures to protect themselves from the money laundering and terrorist financing risks posed by these jurisdictions. Counter-measures are enhanced due diligence or restrictive measures that go beyond the normal AML/CFT requirements, such as requiring additional information or documentation, rejecting transactions, restricting business relationships, or terminating correspondent banking relationships. The FATF also provides guidance on the types and levels of counter-measures that may be appropriate, depending on the specific risks and circumstances of each jurisdiction.

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