TaxPersonal TaxFATF ‘bad boys’ risk trade losses

FATF 'bad boys' risk trade losses

A host of countries risk the threat of loss of trade with the EU and G7 nations after the Financial Action Task Force included them on its annual money laundering 'blacklist', released today.

The FATF report, announced at the OECD this afternoon, made a number of changes to its 2000 blacklist.

The Bahamas, the Cayman Islands, Liechtenstein and Panama all had their names removed from the list of non-compliant countries after the FATF was satisfied they had put in place sufficient anti-money laundering systems.

This will no doubt please Prince Philipp of Liechtenstein, who is due to speak at a press conference at KPMG’s headquarters in London on Monday highlighted his country’s progress in implementing anti-money laundering reforms.

But the news was not so good for the remaining 12 names on the list which the OECD deemed non-co-operative in the war against money laundering. They are the Cook Islands, Dominica, the Marshall Islands, St Kitts and Nevis, St Vincent and the Grenadines as well as Israel, Lebanon, Nauru, Niue, the Philippines and Russia.

These countries, along with Egypt, Guatemala, Hungary, Indonesia, Myanmar and Nigeria, which were added to the 2001 list, face the possibility of economic sanctions and threats to their economic development.

Andrew Clark, head of anti-money laundering at PricewaterhouseCoopers was particurlarly critical of Russia: ‘For a country which relies so heavily on trade with G7 nations, failure to act could lead to economic difficulties and may deter western countries from investing in it.’

Links

FATF to meet over blacklisted havens

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