FATF Issues Report on Non-Cooperative Countries

IMPORTANT: The full content of this page is available to premium users only.

Thursday, August 1, 2002
Bruce Zagaris
On June 21, 2002 the Financial Action Task Force on Money Laundering (FAFT) issued a report reviewing the status of non-cooperative countries or territories (NCCTs), in which it said five countries (Hungary, Israel, Lebanon, and St. Kitts and Nevis) have complied and Nigeria would face new defensive measures unless it quickly starts dialogue with FATF and takes concrete measures to combat money laundering. The FATF report recognizes that Hungary, Israel, Lebannon, and St. Kitts and Nevis, listed as NCCTs in June 2000 and 2001, have addressed the deficiencies identified by the FATF through the enactment of legal reforms. The countries have also taken concrete steps to implement the reforms. Hence, the FATF removed them from the NCCT list and will monitor the developments in the countries, in consultation with the relevant FATF-Style regional bodies and especially in the areas previously mentioned in the NCCT report. The FATF report observed that the Ukraine Government has failed to enact any significant reforms to address its deficiencies. FATF welcomed the statement by the President of Ukraine on June 18, 2002 indicating the importance of this issue and his intention to prioritize the approval of an anti-money laundering bill. The FAFT urged Ukraine to prioritize the enactment and enforcement of comprehensive anti-money laundering legislation, which will be a fundamental first step in addressing the deficiencies FAFT identified. At the end of the report FAFT sets forth in Appendix the list of criteria for defining NCCTs. As normal, the FATF NCCT report produced a number of commentaries on the reasons that certain countries left on the list.