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CMA prevents dealing with countries not adopting the recommendations of The Financial Action Task Force on Anti Money Laundering

CMA prevents dealing with countries not adopting the recommendations of The Financial Action Task Force on Anti Money Laundering

The Capital Markets Authority (CMA) issued Circular no. 3 of 2016 on March 7th, 2016 to all licensed persons instructing them not to deal with the countries not, or inadequately, adopting the recommendations of the International Financial Action Task Force.

We would like to draw your attention to the provision of Article 42-3 of “Anti-Money Laundering & Counter Terrorism Financing” Book of the Executive Regulation of Law no. 7 of 2010 concerning the Establishment of Capital Markets Authority and Regulation of Securities Business, as amended, by virtue of the Decision No. 72 of 2015 of November 9th, 2015, which reads as follows:

“The licensed person must scrutinize the business relationships, or transactions conducted, with financial institutions or customers from countries not, or inadequately, applying the recommendations of the Financial Action Task Force. In the event where CMA notifies the licensed person that a country is not, or inadequately, applying the recommendations of the Financial Action Task Force, the licensed person must classify all business relationships and transactions of such country as of high risk, which entails applying the procedures set forth in Article 21-3 of the present Chapter.”

Thus, the Financial Action Task Force has, in its latest meeting held in February 2016, updated the list of countries not, or inadequately, applying the recommendations of the Action Task Force.

Based on the provisions of the above Article, you are required to visit the website of the Financial Action Task Force to obtain the updated list of countries not, or inadequately, applying the recommendations of the Financial Action Task Force, so that you can act in compliance with the provisions of Article 42-3 of “Anti-Money Laundering & Counter Terrorism Financing” Book.

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