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FATF Statement
 Published Date: 22 July 2024

June 2024 FATF Statement

June 2024 FATF Statement

The Democratic People’s Republic of Korea (DPRK) and Iran continues to remain on the FATF’s list of “High-Risk Jurisdictions subject to a Call for Action” and is subject to the FATF’s call for counter-measures. Financial institutions in Singapore (FIs) should thus continue to pay attention to the money laundering, terrorist financing and proliferation financing risks in dealing with persons from the DPRK and Iran and comply and adopt the relevant risk mitigation measures.

  • On the DPRK, the FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threats they pose to the integrity of the international financial system. The FATF has also noted the DPRK’s increased connectivity with the international financial system, which raised proliferation financing risks. As noted in UNSCR 2270, DPRKK frequently uses front companies, shell companies, joint ventures and complex, opaque ownership structures for the purpose of violating sanctions. The DPRK is subject to the FATF’s call on all jurisdictions to apply countermeasures, and all FIs are to give special attention to business relationships and transactions with the DPRK, including DPRK companies, financial institutions, and those acting on their behalf, whether directly or indirectly.  FIs should thus remain vigilant and consider the DPRK a high-risk jurisdiction and apply enhanced due diligence measures accordingly. FIs should also continue to comply with the requirements in the Financial Services and Markets (Sanctions and Freezing of Assets of Persons – Democratic People’s Republic of Korea) Regulation 2023 and apply appropriate risk mitigation measures taking into account relevant guidance provided by MAS.
  • On Iran, Iran’s action plan expired in January 2018 and in February 2020, the FATF noted that Iran had not completed its action plan.  Given Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, the FATF decided in February 2020 to fully lift the suspension of countermeasures and called on all jurisdictions to apply countermeasures in line with FATF Recommendation 19.  Until Iran implements the measures in its action plan, the FATF remains concerned about the terrorism financing risk emanating from Iran and the threat this poses to the international financial system.  FIs should thus consider Iran a high-risk jurisdiction and apply enhanced due diligence measures accordingly. FIs should also continue to comply with the requirements in the Financial Services and Markets (Sanctions and Freezing of Assets of Persons – Iran) Regulations 2023 and apply appropriate risk mitigation measures taking into account relevant guidance provided by MAS.

Since October 2022, the FATF called on all jurisdictions to apply enhanced due diligence measures proportionate to risks arising from Myanmar.

  • The FATF noted Myanmar’s continued limited and slow progress in addressing the strategic deficiencies in its AML/CFT regime and that the majority of its action plan items are still not addressed more than a year after its action plan expired in September 2021.
  • FATF has urged Myanmar to fully address its AML/CFT deficiencies. Myanmar will continue to remain on the list of countries subject to FATF’s call for action until its full action plan is completed.
  • FIs should therefore continue to be alert to the heightened risks arising from the situation in Myanmar.  To this end, as communicated by MAS in the previous circular and statement on managing Myanmar risks, FIs must apply enhanced due diligence measures accordingly to detect and mitigate the risks associated with higher-risk customers and transactions.  In accordance with the October 2022 FATF Statement (and reiterated in subsequent statements), FIs should ensure that flows of funds for humanitarian assistance, legitimate Non-Profit Organisation (NPO) activities and remittances are not disrupted when applying enhanced due diligence measures.
  • For the avoidance of doubt, the FATF has not called for other countermeasures against Myanmar, unlike in the case of DPRK and Iran.  

Further details can be found in the following links:

These FATF Statements would assist FIs in their risk assessment and mitigation.  Non-FIs that are subject to AML/CFT requirements in Singapore are also advised to note these Statements and take appropriate measures in accordance with their AML/CFT obligations and the relevant United Nations Regulations.