I. a) FATF public statement dated 22 October 2010 regarding Iran and the Democratic People's Republic of Korea (North Korea)

The FATF's updated statement of 22 October 2010 (Annex 1) concerns countries for which substantial deficiencies have been identified regarding measures to combat money laundering and terrorist financing:

1. Category 1: Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction

   As before, only Iran falls within this category.
   The FATF's public statement dated 25 June 2010 and BaFin Circular 7/2010 (GW) continue to apply. Please refer to BaFin Circular 2/2010 (GW) for information on the measures that must continue to be taken.

2. Category 2: Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of October 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with the jurisdiction, as described below.

   Only North Korea now falls within this category.
   São Tomé and Príncipe was removed from the list due to the progress it has made and in particular due to improved cooperation, and has now been added to the information report dated 22 October 2010 (see I. b)). For this reason, increased vigilance must only be applied to business relationships with North Korea, or with business partners who reside in North Korea, as well as to transactions from or to this country. In addition, the results of any security and review measures taken in this respect are to be clearly documented for the internal audit function, the audit of annual financial statements and any special audits. These measures correspond with BaFin Circular 2/2010 (GW).

   By contrast, the measures ordered in respect of São Tomé and Príncipe in Circular 7/2010 (GW) and 2/2010 (GW) are no longer necessary.

I. b) FATF information report dated 22 October 2010 regarding countries under supervision

In the ongoing review of countries by the FATF and the FATF-style regional bodies (FSRBs), certain countries have continued to show deficiencies with regard to the FATF’s key recommendations.

For details, please refer to the FATF information report dated 22 October 2010 (Annex 2). After the previous report was published on 25 June 2010, Bangladesh, Ghana, Honduras, the Philippines, São Tomé and Príncipe, Tanzania, Venezuela and Vietnam have been added to the list, whereas Azerbaijan and Qatar have been removed.

Although there is no direct obligation to take action and no requirement to apply enhanced due diligence, the situation in these countries must be taken into consideration when assessing the risks of these countries or persons from these countries in the context of the combat against money laundering and terrorist financing.

II. FATF statement regarding the evaluation report on Argentina

Re.: FATF public statement and information report dated 25 June 2010 and BaFin Circular 7/2010 (GW) dated 14 July 2010

During the FATF's country evaluation of Argentina, significant deficiencies were identified which prompted the FATF President to express his serious concern in his report on the Plenary Meeting from 20 to 22 October 2010. The FATF has not yet made a final decision concerning the measures to be taken.

With the risk having increased significantly, however, consideration should be paid even at the present stage to applying enhanced due diligence to business relationships with Argentina, or with business partners who reside in Argentina, as well as to transactions from or to this country.

The results of the implemented security and review measures are to be reasonably documented for the internal audit function, the audit of annual financial statements and any special audits.

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