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by Michael Webster: Investigative Reporter
Despite recent legislation and efforts
by the Marshall’s government to come into complete compliance with
international recommendations, the new "black list of countries that do not
cooperate in the fight against money laundering" still includes the Republic of
the Marshall Islands. Economic sanctions have been threatened for those
countries not cooperating.
Today, June 2, in
Paris, 2:00 pm , The Financial Action Task Force on Money Laundering (FATF)
issued its thirteenth annual report, which outlines its anti-money laundering
and anti-terrorist financing activities as well as a new report updating its
findings on the non-cooperative countries and territories in the
international fight against money laundering.
The FATF removed
Hungary, Israel, Lebanon; and St. Kitts and Nevis from the list of
non-cooperative countries and territories (NCCTs) in the fight
against money laundering. In line with past practice, the FATF will
continue to monitor closely future developments in these jurisdictions. And so
will I.
The current list of
non-cooperative countries and territories NCCTs includes the Marshall
Islands; Cook Islands; Dominica; Egypt; Grenada; Guatemala; Indonesia; Myanmar;
Nauru; Nigeria; Niue; Philippines; Russia; St. Vincent and the Grenadines; and
Ukraine.
The "FATF calls
on its members to update their advisories requesting that their financial
institutions give special attention to businesses and transactions with persons,
including companies and financial institutions, in listed countries or
territories to take into account the changes in the list."
Several of the
countries still on the list have enacted or proposed legislation to remedy
deficiencies identified previously by the FATF, but it was not deemed
sufficient for removal in the latest update.
The new report
indicates that the Marshall Islands enacted regulations that provide
standards for reporting and compliance on 27 May 2003.
The FATF has
come under criticism for its heavy-handed approach to the smaller nations.
The list does not include the larger financial centers which are the destination
of most money laundering. Lack of progress in regulating banking practices,
off-shore banking, and off-shore shipping have kept countries on the list.
At its next Plenary
meeting on 9 October 2003, the FATF will review again the situation of
each NCCT.
On Friday, the FATF
also introduced new legislation to confront money laundering by requiring any
suspicious transactions over 15,000 euros ($14,454) have to be reported,
not only by financial professionals but also by casinos, art dealers, lawyers,
estate agents and others.
Panama and the Bahamas is expected to be put back on the NCCT
list soon after anticipated new legislation is enacted.