18 February 2003

To: Chief Executive of all authorized insurance institutions
      carrying on long term business

Dear Sir/Madam,

Financial Action Task Force Non-cooperative Countries and Territories

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Further to my letter of 9 January 2003 , I write to update you on the work of the Financial Action Task Force ("FATF") in respect of Non-Cooperative Countries and Territories ("NCCTs").

Grenada

The FATF held its Plenary meeting in Paris last week. On 14 February 2003, the FATF decided to remove Grenada from the list of NCCTs as the jurisdiction has implemented significant reforms to its money laundering system. 

The updated list of the remaining 10 NCCTs is as follows : 
 

You are advised to continue to give special attention to businesses and transactions with persons, including companies and financial institutions, in the above NCCTs, in accordance with Recommendation 21Note of the FATF Forty Recommendations.

Ukraine

The FATF decided to withdraw the application of counter-measures with respect to Ukraine as a result of the recent enactment by Ukraine of comprehensive anti-money laundering legislation that addresses the main deficiencies identified by the FATF in 2001 and reaffirmed in December 2002.

Notwithstanding the suspension of the application of counter-measures, Ukraine is still included in the FATF's list of NCCTs. You are therefore advised to continue to give special attention to businesses and transactions with persons, including companies and financial institutions, in Ukraine, in accordance with Recommendation 21 of the FATF Forty Recommendations. Where applicable, the updated list of suspicious activity indicators attached to my letter of 9 January 2003 should be used to help identify reportable suspicious transactions to the Joint Financial Intelligence Unit for prompt investigation in order to ensure compliance with the Guidance Note on Prevention of Money Laundering.

Nauru

The FATF called on its members to continue apply counter-measures to Nauru due to its failure to address the deficiencies of its offshore banking sector. Accordingly, you should continue to apply the counter-measures against Nauru as set out in my letter of 10 December 2001. 
 

The Philippines

In view of the inadequate progress made by the Philippines to enact legislation to address previously identified deficiencies in their anti-money laundering regime, the FATF has recommended the application of counter-measures as of 15 March 2003 with respect to the Philippines unless its government enacts appropriate legislative amendments by that date. I will keep you informed of any further development on this subject.

A copy of the FATF press release of 14 February 2003 detailing the above is attached at Annex for your reference.

The FATF will review the NCCT list from time to time. Changes to the list, if any, will be conveyed to you through similar advisory in due course.

Should you have any enquiries, please contact Mr. William Hsieh at 2867 4529 or Ms. Joanne Lin at 2867 2557.