Financial Action Task Force (FATF) Publications – 23 June 2023

OFFICE OF THE DEPUTY GOVERNOR | FINANCIAL SUPERVISION SECTOR 038 CIRCULAR LETTER NO. CL-2023-___ To : All BSP-Supervised Financial Institutions (BSFIs) Subject : Financial Action Task Force (FATF) Publications – 23 June 2023 This is to inform all BSFIs of the FATF publications on: (i) high-risk jurisdictions subject to a call for action1, (ii) jurisdictions under increased monitoring2, and (iii) statement on the Russian Federation3. 1. High Risk Jurisdictions subject to a Call for Action FATF identifies countries with significant strategic deficiencies to counter money laundering (ML), terrorist financing (TF), and proliferation financing (PF). These jurisdictions are subject to a call for action to protect the international financial system from ML/TF/PF risks emanating from the country. No new countries/jurisdictions were added to this list. • Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures Democratic People’s Republic of Korea (DPRK) and Iran (unchanged since February 2020) BSFIs should refer to the FATF statement on these jurisdictions adopted on 21 February 20204, which was previously disseminated by the BSP thru various circular letters (CLs), the latest of which was CL-2023-0155. While the statement may not necessarily reflect the most recent status of Iran and the DPRK’s anti-money laundering/ countering terrorist financing (AML/CFT) regimes, the FATF’s call to apply countermeasures6 on these high-risk jurisdictions remains in effect. In addition, BSFIs should take necessary actions (such as immediate freezing and filing of returns) required under relevant issuances7 on 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. 1 previously called “Public Statement”; often externally referred to as the “blacklist”; https://www.fatf- gafi.org/en/publications/Fatfgeneral/Call-for-action-June-2023.html 2 previously called “Improving Global AML/CFT Compliance: On-going process”; often externally referred as the “grey list”; https://www.fatf-gafi.org/en/publications/Fatfgeneral/Increased-monitoring-june-2023.html 3 https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-june-2023.html 4 https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for- action-february-2020.html 5 https://www.bsp.gov.ph/Regulations/Issuances/2023/CL-2023-015.pdf 6 The Interpretative Note to Recommendation 19 specifies examples of the countermeasures that could be undertaken by countries. 7 Such as the AMLC 2021 Sanctions Guidelines dated 03 March 2021 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. Classification: GENERAL Page

• Jurisdiction 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 The FATF urges Myanmar to work to fully address its AML/CFT deficiencies. Given the continued lack of progress and the majority of its action items still not addressed after a year beyond the action plan deadline, the FATF decided that further action was necessary in line with its procedures and calls on its members and other 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. 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 ML/TF/PF within agreed timeframes. The FATF has issued an updated list of jurisdictions under increased monitoring. New jurisdictions added to the list are Cameroon, Croatia, and Vietnam. 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 Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the Russian Federation in order to protect the international financial system. The suspension of the membership of the Russian Federation continues to stand. 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 FATF’s 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. Digitally signed by Chuchi G. Fonacier Date: 2023.07.04 14:00:22 +08'00' CHUCHI G. FONACIER Deputy Governor 04 July 2023