FATF Imposes Countermeasures Against Ukraine and Defers Them Against Nigeria

On December 12, 2002, the Financial Action Task Force (FATF) announced it will apply counter-measures to Ukraine, in addition to the current application of Recommendation 21 and defer any counter-measures against Nigeria. FATF’s decision resulted from Ukraine’s failure to enact anti-money laundering legislation that fulfills international standards. On December 7, 2002, although Ukraine passed the “Law of Ukraine on Prevention and Counteractions of the Legalization (Laundering) of the Proceeds from Crime,” the legislation does not respond to the main imperfections FATF identified in its June 2001 review of Ukraine’s anti-money laundering regime. The FATF has observed the December 2002 statements by the Prime Minister of Ukraine states that legislative amendments would be discussed by the Ukrainian Parliament promptly. FATF has deferred applying additional counter-measures to Nigeria due to Nigeria’s enactment of the “Money Laundering Act (Amendment) Act 2002" on December 14, 2002. The legislation improves significantly the scope of Nigeria’s 1995 anti-money laundering law. Because deficiencies remain in its regime, Nigeria remains subject to recommendation 21. Since Ukraine and Nigeria remain on the list of on-cooperative countries and territories. (NCCTs), the FATF will monitor the situation in both countries closely and discuss them again at the next FATF Plenary meeting in Paris on February 12-14, 2003.