Dr. Majdadden Issa’s Post

Today we have published the report of the FATF-Middleeast and North Africa Financial Action Task Force (MENAFATF) mutual evaluation of Oman. The ME assessed the effectiveness of Oman’s AML/CFT/CPF measures, and the level of compliance with FATF Recommendations, at the time of an on-site visit between January and February 2024.  Oman has significantly improved its AML/CFT framework in recent years with robust technical compliance. Oman is achieving positive results in the use of financial intelligence, international cooperation, combating terrorist financing and implementing financial sanctions for proliferation financing. However, in some areas more time and effort are needed for measures and reforms introduced to impact effectiveness.      Read the full report on our website: bit.ly/3VNZCaJ    #moneylaundering #terroristfinancing #aml #cft #mer #mutualevaluation #FollowTheMoney #MER

Oman has put in place a well-resourced AML/CFT supervision framework. While the supervision is risk-based to some extent, some challenges remain on the ability of all supervisors to understand ML/TF risks. While Omani authorities have access to most Beneficial Ownership information, the country should finalise its centralised Beneficial Ownership registry to further improve the availability of information to all legal persons. Oman places excessive measures on Non-Profit Organisations (NPOs), which are not consistent with Recommendation 8 of the FATF’s Standards. This may discourage and disrupt legitimate NPO activities, so Oman should remove the requirement that NPOs serve as reporting entities. Following the assessment, Oman is placed in "enhanced follow-up" and will report back to MENAFATF in one year.

FATF Plenary Outcomes: the Financial Action Task Force (FATF) (the global money laundering and terrorist financing watchdog) plenary session was held on June 26th to the 28th in Singapore with these outcomes: o       Issued an updated statement on high-risk and other monitored jurisdictions including: o   Two countries removed from increased monitoring following successful on-site visits: Türkiye/Turkey and Jamaica. o   Monaco and Venezuela have been added to the list of jurisdictions subject to increased monitoring. o   Reiterated concerns over the Democratic People’s Republic of Korea’s (DPRK) continued failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism regime and the serious threats posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction and its financing. o       Revised the criteria for prioritising countries under its International Cooperation Review Group (ICRG) process (i.e. grey or blacking listing process). o        Agreed how countries will be assessed for compliance with the recently revised FATF Standards that further enhance asset recovery and international co-operation frameworks and more effectively deprive criminals of the proceeds of crime o      Discussed and adopted the joint FAT/APG/EAG assessment of India and the joint FATF-MENAFATF assessment of Kuwait. The full outcomes can be read here: https://lnkd.in/e9WnyWpY #AML #FATF #AntiMoneyLaundering #ComplianceInstitute

🌍 New FATF Gray List Additions: Lebanon, Algeria, Angola, and Ivory Coast🌍 On October 25, 2024, the Financial Action Task Force (FATF) placed Lebanon, Algeria, Angola, and Ivory Coast on its "gray list" due to gaps in their anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks. What does this mean? Being on the gray list signals that these countries have regulatory weaknesses, making them vulnerable to financial crime risks. While this doesn’t lead to automatic sanctions, it does increase scrutiny from global financial institutions and could impact foreign investment. 🌐 FATF’s decision serves as a reminder of the importance of strong AML/CTF practices in ensuring a secure financial environment. As these jurisdictions work toward reforms, the global community will be watching closely to support and encourage stronger financial safeguards. #AML #CTF #FATF #Finance #Compliance #RiskManagement

🇵🇦Yesterday, the International Monetary Fund (#IMF) published a document titled "Panama: Financial Sector Assessment Program - Technical Note on #AntiMoneyLaundering and Combating the #FinancingofTerrorism (#AML/#CFT)," dated July 19, 2024. This free report, available in PDF format, reviews Panama's ongoing efforts to align its anti-#moneylaundering and combating the financing of terrorism (AML/CFT) regime with international standards. Panama has faced significant challenges in meeting these standards, resulting in periods of being included on the @Financial Action Task Force (#FATF) "#greylist." The country's AML/CFT regime was last assessed against FATF standards in 2017, identifying strategic deficiencies, particularly in preventing the misuse of legal entities for money laundering. Consequently, Panama was grey-listed in June 2019 and remained on the list until October 2023, despite the action plan deadlines set for January 2021. Panama was removed from the grey list at the FATF October 2023 Plenary, having completed all items of its action plan and confirmed through an onsite visit in September 2023.

📣 Treasury / OFAC Issues General License for Wind Down of Transactions Involving Blocked Entities On October 7, 2024, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued General License No. 30, authorizing the wind down of transactions involving specific entities blocked under the Global Terrorism Sanctions Regulations (31 CFR part 594). 📜 The license permits transactions necessary to wind down dealings with Al Ahmar Trading Group, Al Salam Trading and Agencies General Establishment, Sabaturk Dis Ticaret Anomin Sirketi, Vivid Enerji Yatirimlari Anonim Sirketi, Investrade Portfoy Yonetimi Anomim Sirketi, or any entity with 50% or more ownership by these parties, until November 21, 2024, provided payments go into a blocked account. Original source 👉: https://lnkd.in/gDmZaEZD #USsanctions #sanctionsupdate #sanctionscompliance #GlobalTerrorism #OFAC

Jurisdictions under Increased Monitoring (i.e. "grey list"), this means countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Following review, the FATF now also identifies Algeria, Angola, Côte d'Ivoire and Lebanon added part of the jurisdictions under increased monitoring "grey list".

❓ Why is South Africa struggling to get off FATF’s grey list? 5 significant deficiencies still need to be addressed from the 22 key action items imposed last year. While smaller countries have been removed, South Africa’s advanced economy is in a mire—some analysts think removal will be delayed until 2026! As the greylisting aimed to shed light on the whole continent’s terrorist financing issue, more needs to be done in the rainbow nation to bolster lax AML, impose targeted sanctions, and cooperate to stop the flow of illicit proceeds. ⏱ We’ll always monitor proceedings, hoping that commitment to valuable AML/CFT measures will strengthen over time.

🌍 𝗚-𝟳'𝘀 𝘁𝗮𝘀𝗸 𝗳𝗼𝗿𝗰𝗲 𝗼𝗻 𝗺𝗼𝗻𝗲𝘆 𝗹𝗮𝘂𝗻𝗱𝗲𝗿𝗶𝗻𝗴 𝘃𝗶𝘀𝗶𝘁𝗲𝗱 𝗧𝘂𝗿𝗸𝗲𝘆 🌍 The Financial Action Task Force (FATF) conducted an important on-site visit to Turkey. This visit is a critical step in assessing the nation's efforts to enhance its anti-money laundering (AML) and counter-terrorist financing (CTF) systems since its grey-listing in 2021. Turkey was grey-listed by FATF due to concerns over insufficient oversight in sectors susceptible to money laundering and terrorism financing, including banking and real estate. This listing has significant implications, potentially affecting the country’s relationships with international banks and investors. 𝗧𝗵𝗲 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗶𝘀 𝘃𝗶𝘀𝗶𝘁 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗽𝗶𝘃𝗼𝘁𝗮𝗹 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘂𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝗙𝗔𝗧𝗙 𝗽𝗹𝗲𝗻𝗮𝗿𝘆 𝗼𝗻 𝗝𝘂𝗻𝗲 𝟮𝟴, 𝘄𝗵𝗲𝗿𝗲 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 𝗮𝗯𝗼𝘂𝘁 𝗧𝘂𝗿𝗸𝗲𝘆'𝘀 𝗴𝗿𝗲𝘆 𝗹𝗶𝘀𝘁 𝘀𝘁𝗮𝘁𝘂𝘀 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗺𝗮𝗱𝗲. Finance Minister Mehmet Şimsek has indicated optimism, citing substantial progress and a return to more traditional economic policies. An upgrade from the grey list could potentially strengthen the Turkish lira and enhance investor confidence in Turkey’s financial markets. #FATF #AML #CTF #Turkey #G7

Lebanon’s Challenge Assessing the Potential for FATF Compliance Lebanon is currently under intense scrutiny by the Financial Action Task Force (FATF), an intergovernmental organization established in 1989 to develop policies aimed at combating money laundering and terrorist financing. FATF sets international standards and promotes their implementation globally, with regional bodies like the Middle East and North Africa Financial Action Task Force (MENA-FATF) working to ensure adherence in specific regions. Lebanon, a member of the MENA-FATF, is at risk of being placed back on FATF's "grey list" in October 2024 due to significant deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. This potential downgrade is rooted in a 2023 assessment that highlighted the country's failure to meet international standards, despite a one-year extension to improve. A grey-listing could have severe implications for Lebanon’s financial sector, leading to stricter compliance requirements from foreign correspondent banks and further exacerbating the country’s economic challenges. The central bank has been actively engaging with international bodies, including the IMF and the U.S. Treasury, to avert this outcome, but the situation remains precarious. Lebanon’s current predicament is inextricably linked to its complex and often toxic history, marked by prolonged conflicts, foreign interventions, and deeply entrenched sectarian divisions. These factors have left the state with a fragile structure and weakened institutions, complicating efforts to implement and sustain effective AML and CFT measures. The geopolitical landscape further hinders progress, as Lebanon is often caught between competing regional and international powers, adding to the challenges in meeting FATF’s expectations. #Lebanon #FinancialActionTaskForce #FATF #GreyList #AntiMoneyLaundering #AML #CounterTerrorismFinancing #CFT #BankingSector #PoliticalWill #InstitutionalCapacity #CashEconomy #NonStateActors #Hezbollah #GovernanceChallenges #ComplianceProcedures #MENAFATF #EconomicStability #FinancialRegulation #InternationalStandards #LebanonFinancialCrisis #GeopoliticalInfluence #NationalReconciliation #ChiefComplianceOfficer Financial Action Task Force (FATF) Association of Banks In Lebanon