Turkmenistan ready to sign agreement with EAG

Turkmenistan is ready to sign an agreement with the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG), an official Turkmen source said on Monday.

The document has been approved by the Turkmen President Gurbanguly Berdimuhammadov, who at a recent government meeting said that "intensifying cooperation with all world countries and authoritative international financial institutions is a key aspect of Turkmenistan’s foreign policy strategy".

He said work done in this sphere contributes to "realization of the comprehensive measures to increase the country’s economic power".

Turkmenistan joined the Eurasian Group on Combating Money Laundering and Financing Terrorism in 2007, becoming its full member last year. Prior to that, the country adopted the Law on Combating Money Laundering and Financing Terrorism.

The EAG was established in 2004 and includes such countries as Belarus, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan.

A delegation of the Financial Action Task Force (FATF) visits Ashgabat regularly.

Early this year an interdepartmental coordinating working committee was established under the Turkmen Finance Ministry to combat money laundering and the financing of terrorism in Turkmenistan.

Source: Trend

OSCE familiarizes Turkmenistan with money-laundering prevention mechanisms

Ashgabat hosts the OSCE -supported workshop on prevention of money-laundering by applying international mechanisms, tools and best practices, OSCE said.

The five-day workshop was organized by the OSCE Centre in Ashgabat in co-operation with the OSCE Office of the Coordinator of OSCE Economic and Environmental Activities. Representatives from the Finance Ministry, Economy and Development Ministry, Ministry of Internal Affairs, General Prosecutor's Office, National Security Ministry, Supreme and Arbitration Courts, Justice Ministry, State Border Service, State Customs Service, Central Bank, State Tax Service and Foreign Ministry are attending the workshop.

Several international experts will share with participants their experiences in a wide range of areas, including European mechanisms of preventing money laundering, financial tools to detect terrorism and extremism financing, as well as investigating cases of financing proliferation activities. The workshop participants will look at case studies on money laundering in offshore zones, and money laundering-related IT crimes; they will also discuss methods of combating corruption and bribery.

"Money-laundering and its consequences pose a serious threat to national and international security", Ambassador Sergei Belyaev, the Head of the OSCE Centre in Ashgabat, said.

"This training workshop marks another positive step in Turkmenistan-OSCE co-operation; it demonstrates the continuous willingness of Turkmenistan to engage in working with international partners in promoting good governance," he added.

"We believe today's event will contribute to national capacity-building and enhance the commitment of the country's authorities to combating money laundering," Belyaev said.

Source: Trend.AZ

UK Treasury backs warning of "serious threats" to international finance

The UK's Treasury has backed warnings from the Financial Action Task Force (FATF) that the international financial system could face "serious threats" from deficiencies in the anti-money laundering (AML) and counter-terrorist financing (CTF) systems of countries including Iran and Pakistan.

Uzbekistan and Turkmenistan were also flagged up by the FATF as countries that face AML and CTF deficiencies, along with the island of Sao Tome off the coast of west Africa and the northern part of Cyprus.

As a result of the warnings, the Treasury has advised all UK businesses covered by the Money Laundering Regulations 2007 to treat transactions from Iran and Uzbekistan as "situations that by their nature can present a higher risk of money laundering or terrorist financing" and therefore require increased scrutiny.

People operating under the authorisation of the Financial Services Authority should also consider the advice when developing their counter-financial crime systems in order to minimise risk, it added.

The FATF is an inter-governmental body that seeks to develop nationally and internationally adopted anti-money laundering and counter-terrorist financing policies.

Source: Bobsguide

FATF Statement - 16 October 2008

IRAN
The FATF welcomes Iran’s recent engagement with the international community on anti-money laundering, notes the initial steps taken towards remedying the deficiencies in this area, and urges Iran to address the remaining weaknesses.

The FATF is particularly concerned that the lack of corresponding effort by Iran to address the risk of terrorist financing continues to pose a serious threat to the integrity of the international financial system. Urgent action to address this vulnerability is necessary.

The FATF calls on its members, and urges all jurisdictions, to strengthen preventive measures to protect their financial sectors from this risk.

The FATF is prepared to engage directly in assisting Iran in decisively addressing the weaknesses in its AML/CFT regime.

UZBEKISTAN
The FATF takes note of the action plan prepared by Uzbekistan to address deficiencies in its AML/CFT regime.

The FATF is increasingly concerned that the continuing failure by Uzbekistan to restore its AML/CFT regime poses a serious threat to the integrity of the international financial system. Urgent action to address this vulnerability and to meet international standards is necessary.

The FATF calls on its members, and urges all jurisdictions, to strengthen preventive measures to protect their financial sectors from this risk.

The FATF, along with the Eurasian Group, is prepared to engage directly in assisting Uzbekistan in developing a robust AML/CFT regime.

TURKMENISTAN
The FATF notes Turkmenistan’s efforts towards adopting AML legislation. However, financial institutions should be aware that the lack of an AML/CFT regime in Turkmenistan constitutes a money laundering/terrorist financing vulnerability in the international financial system. Turkmenistan is urged to continue its efforts to establish a comprehensive AML/CFT regime that meets international AML/CFT standards and to work closely with the Eurasian Group and the International Monetary Fund to achieve this.

PAKISTAN AND SAO TOME AND PRINCIPE
The FATF reaffirms its public statement of 28 February 2008 regarding the money laundering and financing of terrorism risks posed by Pakistan and Sao Tome and Principe.

AML/CFT IMPROVEMENTS IN THE NORTHERN PART OF CYPRUS
The FATF welcomes the significant progress made in the northern part of Cyprus and notes that the northern part of Cyprus has substantially addressed the AML/CFT deficiencies that the FATF had identified. FATF encourages the northern part of Cyprus to continue to improve its AML/CFT system. Implementation will be monitored through appropriate mechanisms.

Source: FATF Website

Money laundering hotspots could see advisers get burned

The notice regards what the FSA warns is the lack of comprehensive anti-money laundering and combating terrorist financing systems in Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe and the northern part of Cyprus.

The warning was issued by the Financial Action Task Force, an inter-governmental body established by the G7 countries in 1989. The UK is holder of the rotating FATF presidency until this summer.

A year ago the government published a document 'The financial challenge to crime and terrorism'. It set out its approach to using financial tools to deter crime and terrorism; detect it when it happens; and, disrupt those responsible and hold them to account for their actions.

The FATF is recommending that all UK businesses within the financial sector factor this heightened risk into account and consider applying increased scrutiny and due diligence to any transactions associated with Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe and the northern part of Cyprus.

Last autumn the FSA said it had identified areas where the practices of mortgage advisers could lead to an increased risk of fraud and money laundering.

In one of a series of reviews undertaken by the FSA it examined sales of self-cert mortgages. During the course of the review it found many serious failings, including readiness to proceed with arranging a mortgage despite doubting the accuracy of financial information customers were giving them.

Stephen Bland, director of small firms for the FSA, said: "During the reviews we saw a number of good advisers who are meeting the required standards and they are being undermined by the negligence or wilful non-compliance of others. We also saw some who despite having some way to go, were willing to engage with us and be helped to improve their performance, which is why we are providing so much guidance following these reviews. However there are still an unacceptable number of firms unwilling to change and they are damaging the rest of the industry.

"We found some firms willing to offer mortgages they know to be unaffordable and to accept self-cert business even where they had concerns that the financial information provided by the customer was implausible. These practices are completely inconsistent with treating customers fairly - hence the large number of enforcement referrals and other regulatory actions.

"Overall there is a need for a big improvement in senior management's use of management information to help achieve the fair treatment of their customers to achieve the progress we and the industry as a whole want to see."

The main areas identified in the reviews as needing improvement include the assessment of affordability, the collection of customer information to establish clients' needs supervision and assessment of advisers' competence and the use of management information. The reviews also identified areas where firms' practices could lead to an increased risk of fraud and money laundering."

http://ftadviser.com/MortgageAdviser/Mortgages/News/article/20080312/ae5a58c0-e9ed-11dc-a231-0015171400aa/Money-laundering-hotspots-could-see-advisers-get-burned.jsp

Turkmenistan: Anti-terror financing workshop held

Turkmenistan officials working to increase the country's involvement in combating terrorism financing recently hosted a two-day training workshop.

The aim of the workshop, held Tuesday and Wednesday in the capital city of Ashgabat, was to train Turkmenistan authorities on tactics to fight money-laundering and the financing of terrorism. The event was organized by the Organization for Security and Cooperation in Europe along with the World Bank, the U.N. Office on Drugs and Crime, the International Monetary Fund and the Eurasian Group on Combating Money Laundering and Financing of Terrorism, the OSCE reported.

"A single country alone is not capable of fighting money laundering and terrorism financing," Ambassador Ibrahim Djikic, the head of the OSCE Center in Ashgabat, said in a statement. "In our globalized world, borders are not an obstacle for organized crime groups and terrorists. Only coordinated actions by law enforcement agencies of different countries and assistance from the private and financial sectors can do the job."

Officials say the training included international standards on how to implement an effective anti- money-laundering and terrorism-financing system to protect the citizens of Turkmenistan.

The workshop is part of a larger effort by Turkmenistan to crack down on terrorism funds that are trafficked through the country. "Turkmenistan is in the process of drafting a new law to improve its national efforts to fight organized criminal activity and more effectively contribute to the global fight against money laundering and terrorist financing," the release said.

http://www.metimes.com/Security/2008/03/05/anti-terror_financing_workshop_held/8a7c/

UK: HM Treasury warns businesses of serious threats posed to the international financial system

This notice constitutes advice issued by HM Treasury about serious threats posed to the integrity of the international financial system. The Money Laundering Regulations 2007 require firms to put in place policies, procedures or systems in order to prevent money laundering or terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in "any other situation which by its nature can present a higher risk of money laundering or terrorist financing".

On 25th February 2009 the Financial Action Task Force (FATF) issued a statement drawing attention to deficiencies in several jurisdictions of concern. The UK fully supports the work of the FATF on these matters and HM Treasury agrees with the FATF's assessments.

The UK additionally draws attention to, and supports, the public statement of MONEYVAL (a FATF style regional body under the auspices of the Council of Europe) of 12 December 2008 in respect of Azerbaijan.

The substance of the FATF statement is attached as an Annex.

Iran
The FATF announced that it remains concerned by Iran's failure to meaningfully address the deficiencies in its anti-money laundering and combating terrorist financing (AML/CTF) regime, particularly in respect of terrorist financing and suspicious activity reporting.

The FATF has called on its members to consider effective countermeasures to protect their financial sectors from risks emanating from Iran, and to protect against the use of correspondent banking relationships to bypass or evade counter-measures and risk mitigation practices.

All UK businesses regulated under the Money Laundering Regulations 2007, whether financial institutions or other regulated persons should treat transactions associated with Iran as situations that by their nature can present a higher risk of money laundering or terrorist financing, and which therefore require increased scrutiny, enhanced due diligence, and ongoing monitoring, including in the case of correspondent relationships.

All other persons authorised by the Financial Services Authority should also take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

In the light of the call for countermeasures the UK is, in addition, considering what further action is required.

Uzbekistan
The FATF has also drawn attention to the continuing AML/CTF deficiencies in Uzbekistan.

The attention of UK financial institutions and other persons regulated for money-laundering purposes is therefore drawn to the FATF statement in respect of this jurisdiction, and the risk that it continues to present. They should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

Turkmenistan, Pakistan, and Sao Tome and Principe
The FATF has also drawn attention to the continuing AML/CTF deficiencies in Turkmenistan, Pakistan, and Sao Tome and Principe.

The attention of UK financial institutions regulated for money laundering purposes is therefore drawn to the FATF statements in respect of those jurisdictions, and the risks that they continue to present. They should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

The northern part of Cyprus
The northern part of Cyprus is no longer highlighted as a jurisdiction of concern, following improvements made to its AML/CTF regime.

Azerbaijan
MONEYVAL drew attention to deficiencies in the AML/CTF regime in Azerbaijan in December 2008.

The attention of UK financial institutions regulated for money laundering purposes is therefore drawn to the MONEYVAL statement in respect of this jurisdiction, and the risks that it continues to present.

This advice is effective immediately.

Source: eGov

UKs Statement On Overseas Jurisdiction In Money Laundering Controls

This notice constitutes advice issued by HM Treasury about risks posed by unsatisfactory money laundering controls in a number of jurisdictions.

The Money Laundering Regulations 2007 require firms to put in place policies, procedures or systems in order to prevent money laundering or terrorist financing.

Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in “any other situation which by its nature can present a higher risk of money laundering or terrorist financing”.

On 16th October 2009 the Financial Action Task Force (FATF) issued a further statement drawing attention to deficiencies in several jurisdictions of concern. The UK fully supports the work of the FATF on these matters and HM Treasury agrees with the FATF assessments.

The UK additionally draws attention to, and supports, the public statements of MONEYVAL (a FATF style regional body under the auspices of the Council of Europe) in respect of Azerbaijan in December 2008, March 2009 and September 2009.

This advice is effective immediately.

The substance of the FATF statement is attached as an Annex.

Iran

The FATF is concerned about Iran’s lack of engagement with the FATF and its failure to meaningfully address the ongoing and substantial deficiencies in its AML/CFT regime.

The FATF has called on its members to apply effective countermeasures to protect their financial sectors from risks emanating from Iran, and to protect against the use of correspondent banking relationships to bypass or evade counter-measures and risk mitigation practices. The FATF has further warned that it will call upon its members and other jurisdictions to strengthen counter-measures at it’s next meeting in February 2010 if Iran fails to take concrete steps to improve the deficiencies in its AML/CFT regime.

All UK businesses regulated under the Money Laundering Regulations 2007 whether financial institutions or other regulated persons should treat transactions associated with Iran as situations that by their nature can present a higher risk of money laundering or terrorist financing, and which therefore require increased scrutiny, enhanced due diligence, and ongoing monitoring, particularly where correspondent relationships are involved, which have been highlighted as a particular risk.

All other persons authorised by the Financial Services Authority should also take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

Further to the call for countermeasures by the FATF, on the 12 October 2009, HM Treasury issued a direction under the Counter Terrorism Act to the UK financial sector to cease all business relationships and transactions with Bank Mellat and Islamic Republic of Iran Shipping Lines (IRISL). For further information on these directions, please see the HM Treasury website: http://www.hm-treasury.gov.uk/fin_crime_policy.htm

Pakistan

The FATF has expressed its concern at the approaching expiry of Pakistan’s Anti-Money Laundering Ordinance, and has urged Pakistan to implement a permanent AML/CFT framework before the Ordinance expires. The FATF also noted that it would consider taking action to protect the financial system from money laundering and terrorist financing risk emanating from Pakistan in February 2010 if concrete progress has not been made by that date.

UK financial institutions regulated for money laundering purposes should pay attention to the latest FATF statement in respect of Pakistan and the risks it presents. Financial institutions should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

Uzbekistan, Turkmenistan and São Tomé and Príncipe

The FATF has also drawn attention to the continuing AML/CTF deficiencies in Uzbekistan, Turkmenistan, and São Tomé and Príncipe.

The attention of UK financial institutions regulated for money laundering purposes is therefore drawn to the FATF statements in respect of those jurisdictions, and the risks that they continue to present. They should take this advice into account in respect of their systems and controls to counter financial crime, and take appropriate actions to minimise the associated risks.

Azerbaijan

MONEYVAL drew attention to deficiencies in the AML/CTF regime in Azerbaijan through statements in December 2008, March 2009 and September 2009.

The attention of UK financial institutions regulated for money laundering purposes is therefore drawn to the latest MONEYVAL statement in respect of this jurisdiction, and the risks that it continues to present.

Source: The Gov Monitor