27 September 2001
To: Chief Executive of all authorized insurance institutions
carrying on long term business
Dear Sir/Madam,
Non-cooperative Countries and Territories
We wrote to you on 27 July 2001 about the work of the Financial Action Task Force (FATF) in respect of non-cooperative countries and territories (NCCTs).
In September 2001, the FATF completed the review of several jurisdictions and added two countries - Grenada and the Ukraine - to its NCCT list because these two countries were found to have serious deficiencies in their anti-money laundering regimes. No country was removed from the NCCT list.
Following a review of another 13 jurisdictions, FATF identified serious deficiencies in the anti-money laundering regimes of six jurisdictions and added them on the NCCT List. These countries are Egypt, Guatemala, Hungary, Indonesia, Myanmar and Nigeria.
The revised list of the 19 NCCTs is presently as follows :
- Cook Islands
- Israel
- Philippines
- Dominica
- Lebanon
- Russia
- Egypt
- Marshall Islands
- St. Kitts and Nevis
- Grenada
- Myanmar
- St. Vincent and the Grenadines
- Guatemala
- Nauru
- Ukraine
- Hungary
- Nigeria
- Indonesia
- Niue
The FATF calls on its members to remind their financial institutions to give special attention to businesses and transactions with persons, including companies and financial institutions, in these NCCTs. This is in line with Recommendation 21 of the Forty Recommendations which states that :
"Financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply these Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help supervisors, auditors and law enforcement agencies."
You are advised to comply with the above Recommendation by giving special attention to business relations and transactions with persons, including companies and financial institutions, from the above NCCTs. This is in addition to the requirements set out in the Guidance Note on Prevention of Money Laundering issued by the Insurance Authority.
In view of the inadequate progress made by the Philippines to address the serious deficiencies in its anti-money laundering regime, the FATF has also decided to recommend the application of additional unter-measures with respect to the Philippines as from 30 September 2001 unless its government enacts significant legislation which addresses the identified money laundering concerns. Details of the counter-measures to be implemented in Hong Kong are set out in the attached jurisdiction-specific advisory in respect of transactions with the Philippines. In case any significant legislation has been enacted by the Philippines by 30 September 2001, the application of counter-measures would be suspended and you would be so notified.
The FATF will review the NCCT list from time to time. Advice of the changes will be provided by similar advisory in due course. Should you have any enquiries in this regard, please contact Mr. William Hsieh at 2867 4529 or Ms. Carol Hui at 2867 255.
Yours sincerely,
(Benjamin Tang)
Commissioner of Insurance
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