The Financial Action Task Force (FATF) updated the list of high-risk countries on 26th February 2024, following a UK update on 21st February 2024.

Specifically, this update adds Kenya and Namibia and removes Barbados, Gibraltar, Uganda and the United Arab Emirates.

Why is knowing what locations are flagged as high-risk important?

Read more about the latest updates:

• FATF – Call for Action (“black list”): https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-february-2024.html
  
• FATF – Increased Monitoring (“grey list”): https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Increased-monitoring-february-2024.html
  
• UK update: https://www.gov.uk/government/publications/money-laundering-advisory-notice-high-risk-third-countries–2/hm-treasury-advisory-notice-high-risk-third-countries

What does this mean for your art business?

The ArtAML™ platform automatically checks for high risk jurisdictions, and countries that border high-risk jurisdictions, in association with:

• Residential address (for private individuals and the UBOs of companies)
• Registered address (for companies)
• Source of funds (for all types of customer)
• Reliance partner (the Art Market Participant or regulated business upon whose AML checks you’re relying)
• If a high-risk (or bordering) jurisdiction is identified in our platform, a red flag is raised, which triggers conducting Enhanced Due Diligence. You will need to take a risk-based approach based on information related to the transaction, in context of the risks your own business faces of being a target of ML/TF activities.

Not yet using ArtAML™ for compliance checks?

Or need to do a manual high-risk jurisdiction check? Review the current lists of high risk jurisdictions via the following links:

• UK list of high risk jurisdictions
• EU list of high risk jurisdictions
• USA list of high risk jurisdictions

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Blog post last updated 28th March 2024.