I. Public statement by the FATF dated 25 June 2010 regarding Iran and other countries

The FATF’s public statement dated 25 June 2010 names countries for which substantial deficiencies have been identified regarding measures to combat money laundering and the financing of terrorism, and for which the FATF has been unable so far to identify any commitment to address these deficiencies.

(Appendix 1)

Compared with the publication dated 18 February 2010, the FATF’s public statement now only contains two categories:

1. Category 1 includes countries with ongoing substantial deficiencies for which the FATF is calling for countermeasures due to the particularly high level of risk.
   
   As before, only Iran falls within this category.
   The FATF’s public statement dated 18 February 2010 and BaFin Circular 2/2010 (GW) continue to apply. Please refer to Circular 2/2010 (GW) for information on the measures that must continue to be taken.
   
2. For Category 2 countries that exhibit key deficiencies and are making no or only insufficient efforts to address them, the FATF calls for attention to be given to the significantly increased risk.
   
   North Korea and São Tomé and Príncipe now fall within this category.
   
   Angola, Ecuador and Ethiopia were removed from the list due to the progress they have made and in particular due to improved cooperation, and have now been added to the information report dated 25 June 2010 (see II.). Conversely, São Tomé and Príncipe was reclassified to Category 2. For this reason, increased vigilance must always be applied to business relationships with North Korea and with São Tomé and Príncipe, or with business partners who reside in these countries, as well as to transactions from or to these countries. In addition, the results of safeguards and control measures implemented for the internal audit function in this respect, as well as the audits of financial statements and any special audits, must be documented in a transparent manner. These measures correspond to BaFin Circular 2/2010 (GW).
   
   By contrast, the measures ordered in respect of Angola, Ecuador and Ethiopia in Circular 2/2010 (GW) are no longer necessary.
   
3. Category 3, which was still contained in the public statement dated 18 February 2010, has been abolished. São Tomé and Príncipe was reclassified to Category 2, while Pakistan and Turkmenistan were included in the information report dated 25 June 2010 (see II.).

II. FATF information report dated 25 June 2010 regarding countries under observation

As part of the ongoing review of countries by the FATF and FATF-style regional bodies (FSRBs), growing deficiencies with regard to the FATF’s key recommendations have been identified for certain countries.

(Appendix 2)

Specifically, attention is draw to the FATF’s information report dated 25 June 2010, to which Angola, Ecuador, Ethiopia, Pakistan and Turkmenistan have now been added compared with the previous report dated 18 February 2010.
Although there is no direct obligation to take action and no requirement to apply increased vigilance, the situation in these countries must be taken into consideration when assessing the risk of these countries or persons from these countries.