Addressing Significant Strategic AML Deficiencies

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The Financial Action Task Force (FATF) is an intergovernmental organization that sets global standards for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. The FATF regularly evaluates its member countries to assess their compliance with these standards.

In cases where a member country has significant strategic anti-money laundering (AML) deficiencies, the FATF calls on other member countries to take certain actions to address the situation. The specific action that the FATF calls on member countries to take in such cases is to apply countermeasures.

Countermeasures are measures taken by member countries to protect their financial systems from the risks associated with transactions with a country that has significant strategic AML deficiencies. These measures may include enhanced due diligence on transactions with that country, restrictions on certain types of transactions, or even a complete prohibition on financial dealings with that country.

The FATF's call for member countries to apply countermeasures in such cases is a serious step aimed at encouraging the country with AML deficiencies to take corrective actions to address the identified deficiencies. The goal is to encourage the country to comply with the FATF's AML standards and to improve the integrity of the global financial system.

It's worth noting that applying countermeasures is not the only action that the FATF calls on member countries to take when a country has significant strategic AML deficiencies. Other actions that may be called for include contributing to mutual evaluations, which involve assessing the AML systems of other member countries, and reporting high-risk transactions to financial intelligence units. However, in the most serious cases, applying countermeasures is the primary action called for by the FATF.