Financial Action Task Force (FATF) Publications – 24 February 2023

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE DEPUW GOVERNOR I FINANCIAL SUPERVTSION SECTOR CIRCULAR LETTER NO. CL.2O23OI5 To : All BSP-Supervised Financial Institutions (BSFts) Subject : Financial ActionTask Force (FATF) Publications -24 February2o2} This is to inform all BSFIs of the FATF publications on: (i) high-risk jurisdictions subject to a call for actionr, (ii) jurisdictions under increased monitoring2 and (iii) the Flussian Federations. l. High Risk Jurisdictions subject to a Call for Action - . Jurisdictions subject to a FATF call on its members and otherjurisdlctions to apply countermeasures Democratic People's Republic of Korea (DPRK) and lran (unchanged since February 2O2Ol BSFIs should refer to the FATF statement on these jurisdictions adopted on 2l February 2O2O4, which was previously disseminated by the BSP thru various circular letters (CLs), the latest of which was CL-2O22-O72'.While the statement may not necessarily reflect the most recent status of lran and the DPRK's anti-money laundering/countering terrorist financing (AMVCFT) regimes, the FATF's call to apply countermeasures6 on these high-risk jurisdictions remains in effect. ln addition, BSFIs should take necessary actions (such as immediate freezing and filing of returns) required under relevant issuancesTon Targeted Financial Sanctions (TFS) in case of funds or property, including related accounts, of the designated persons and entities referred to in all applicable United Nations Security Council (UNSC) and AMLC Resolutions. o turisdiction subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence (EDD) measures proportionate to the risks arising from the jurisdiction Myanmar (unchanged since October 2o.221 Given the continued lack of progress and the majority of its action items still not addressed after a year beyond the action plan deadlines, the FATF decided that further action was necessary in line with its procedures and calls on its members and other 1 Previously called 'Public Statemenf; often externally referred to as the tlacklist'; https/rlrruvw.fatf- gafi-org/erVpublicationsAligh-risk-and-other-monitored-ju risd ictionVCall-for-action-February-2O23-html 2 Previously called 'lmproving Global AMVCFT Compliance: On-going process'; often externally referred as the !rey 1i51"; httpsy'lmmar.fatf-gafi-org/en/publicationVHigh-risk-and-other-monitored- iu risdictiohslncreased-monitoring-fu bruary-2O23.html r hftps:/A^narw-futf-gafi org/en/publications/FatEeneralfatf-statement-russian-federation^htmt a https:/Arvvvw-fatf-gafi.orglpublicationsrhigh-risk-and-other-monitored-jurisdictions/documents/call-fior- action-fiebruary-2O2O-html s https:/ ^ ^Mr.bsp-gov.ph/Regulations/tssuances/2o22lcL-2O22-OZZ.pdf 6 The lnterpretative Note to Recommendation 19 specifies examples of the countermeasures that could be undertaken by countries. 7 Such as the AMLC 2O2l Sanctions Guidelines dated O3 March 2O2l and other issuances to implement the TFS against individuals and entities listed in relevant United Nations Security Council Resolutions, those designated by the Anti-Terrorism Council, and proscribed by the Court of Appeals. 8 Myanma/s action plan expired in september 20,21. ln June 2022, the FATF strongly urged Myanmar to swiftfy complete its action plan by October 20.22 or the FATF would call on its members and urge all jurisdictions to apply enhanced due diligence to business relations and transactions with Myanmar.

jurisdictions to apply EDD measures proportionate to the risk arising from Myanmar. When applying EDD measures, countries should ensure that flow of funds for humanitarian assistance, legitimate non-profit organization activity and remittances are not disrupted. 2. turisdictions under Increased Monitoring - The FATF has issued an updated list of jurisdictions under increased monitoring. These countries are actively working with the FATF and have committed to resolve swiftly the identified strategic deficiencies in their regimes to counter money laundering, terrorist financing, and prolifuration financing within agreed timelines. The FATF does not call for the application of EDD measures on these jurisdictions but encourages its members and all jurisdictions to take into account the information presented in their risk analysis. 3. Statement on the Russian Federation - The FATF continues to call upon alljurisdictions to remain vigilant of threats to the integrity, safety and securigr of the international financial system arising ftom the Russian Federation's war against Ukraine. The FATF reiterates that all jurisdictions should be alert to possible emerging risks from the circumvention of measures taken in order to protect the international financial system and take the necessary measures to mitigate these risks. Copies of the aforementioned FATF publications may be viewed and downloaded from the FATF website (www.fatf-gafi.org). BSFIs are likewise directed to regularly refer to the FATFs website for the latest statements on high risk and other monitored jurisdictions and consider the same in their risk analysis and mitigation strategies. For guidance and strict compliance. Oighlly sigmd by ChKhi G. Dil.:202303.02 I r30{3 $8'm' CI{UCHI G. FONACIER Deputy Governor o.2March20.23 Page 2 of2