US Treasury Issues Instructions Following FATF Announcement

by Mike Godfrey, Tax-News.com, Washington

05 July 2001

The US Treasury has issued revised instructions to banks and other financial institutions following the release of the FATF report on money laundering, it was announced recently. Following the removal of the Bahamas, the Cayman Islands, Liechtenstein, and Panama from the Financial Action Task Force's blacklist, the Treasury announced that Advisories 13, 14, 19, and 23 respectively, were no longer necessary due to the enactment and implementation of new anti-money laundering laws.

This effectively means that US based banks and other institutions do not need to apply enhanced scrutiny to transactions involving these countries, although James F. Sloan, director of the Financial Crimes Enforcement Network (FinCEN) warned that the withdrawal of the advisories did not: '...relieve institutions of their pre-existing and on-going obligation to report suspicious activity, as set forth in regulations issued by FinCEN and by the federal bank supervisory agencies.'

The Treasury department added that it would be considering appropriate guidance for financial institutions regarding the six countries which were added to the FATF blacklist, namely Burma, Egypt, Guatemala, Hungary, Indonesia and Nigeria. Advisories will remain in force until further notice on all countries which have failed to get themselves removed from the FATF hall of shame.

However, the department did offer some support to the 'uncooperative' countries, saying that: 'United States officials stand ready to provide appropriate technical assistance to these jurisdictions as they work to remedy the deficiencies in their counter-money laundering systems.'

Recommended