Topics of Interest
Money Laundering
Fact Sheet on Money Laundering Advisories
U.S. Department of the Treasury
Today, the U.S. joined our G-7 partners in announcing the issuance of Advisories to our domestic financial institutions. As detailed in each Advisory, these Advisories call upon financial institutions to apply enhanced scrutiny to transactions involving 15 nations whose counter-money laundering systems we have found to be deficient. These same 15 nations were identified last month by the Financial Action Task Force as being non-cooperative in the international fight against money laundering. This coordinated, multilateral response to international money laundering is a landmark step that reflects a new international commitment to curb financial abuse around the world.
The Advisories that we are issuing are intended to notify our domestic financial institutions of money laundering risks that they face in the identified jurisdictions, and to protect our financial systems from the corrupting influence of money laundering. The jurisdictions that are the subject of Advisories are as follows:
Bahamas, Cayman Islands, Cook Islands, Dominica, Israel, Lebanon, Liechtenstein, Marshall Islands, Nauru, Niue, Panama, Philippines, Russia, St. Kitts and Nevis, St. Vincent and the Grenadines.
Each Advisory issued by the United States is based on an independent review the U.S. undertook of each identified country's domestic counter-money laundering regime, and each Advisory is tailored to the individual country, both regarding the description of the problem and the actions that financial institutions are called upon to undertake.
Each Advisory will remain in effect until the identified country takes concrete steps to bring its counter-money laundering regime into compliance with international standards. At that time, we will revise or rescind the Advisory, as appropriate. With regard to those jurisdictions that continue to refuse to join the international fight against money laundering, we will begin to consider taking multilateral countermeasures in coordination with our G-7 allies, including the possibility of conditioning or restricting financial transactions with those jurisdictions as well as the support they receive from the international financial institutions.
These Advisories are not sanctions, and it is not our intent to curtail legitimate business with any of the identified jurisdictions. It is, however, our goal to curtail the access to our financial systems that international money launderers have gained through inadequate counter-money laundering regimes in other countries. We hope that our actions will encourage all the jurisdictions concerned to take appropriate and urgent steps to improve their anti-money laundering regimes. Along with others in the G-7, we attach importance to maintaining an ongoing dialogue with identified countries and territories and, where appropriate, providing technical assistance to help them bring their anti-money laundering regimes into compliance with international standards.
Taken together with recent actions by the Financial Stability Forum
(categorizing offshore financial centers according to their perceived
quality of supervision and degree of regulatory cooperation) and the
OECD [Organization for Economic Cooperation and Development] (cracking
down on harmful tax competition) FATF's action reflects a new
international commitment to curb financial abuse around the world.
These measures are crucial steps in the effort to ensure that global
mobility of capital remains a strong positive force for economic growth
and prosperity worldwide.
Washington, D.C.
July 8, 2000