The Financial Action Task Force (FATF), the international body that plays a leading role in the campaign against money laundering, has removed Egypt and Ukraine from its list of countries that do not have adequate controls against money laundering.

In a February 27 news release, the U.S. Department of the Treasury hailed the announcement as a sign of FATF's progress in helping countries adopt and enforce measures to stop the flow of funds to terrorist and other criminal enterprises.

"Today's announcement is a clear indication that we are making important progress in building the international net to prevent and catch the flow of tainted money through the financial system," Deputy Assistant Secretary Juan Zarate said in the Treasury release.

The 31-member FATF maintains a list of non-cooperative countries and territories (NCCTs) that do not meet international standards against money laundering. These countries can be subjected to counter-measures, including heightened scrutiny by banks dealing with any transactions originating from an NCCT-listed country.

The FATF list of countries that are still designated as NCCTs is: Cook Islands, Guatemala, Indonesia, Myanmar, Nauru, Nigeria and Philippines.

U.S. Department of the Treasury
Office of Public Affairs
February 27, 2004

FATF STRENGTHENS CAMPAIGN TO FIGHT MONEY LAUNDERING AND TERRORIST FINANCING

At its Plenary meeting in Paris today, the Financial Action Task Force (FATF), the international body leading the charge to safeguard the global financial system against money laundering and terrorist financing, announced the removal of Egypt and Ukraine from its list of Non-Cooperative Countries and Territories (NCCTs).

The international community, through the FATF, continues to remain vigilant and act against the threat of money laundering and terrorist financing. "Today's announcement is a clear indication that we are making important progress in building the international net to prevent and catch the flow of tainted money through the financial system," said Juan Zarate, the U.S. Treasury Department's Deputy Assistant Secretary for the Executive Office of Terrorist Financing and Financial Crimes.

NCCTs are countries that have failed to adopt and implement adequate measures to effectively fight money laundering. Countries on the NCCT list can be subjected to a range of counter measures, including increased scrutiny when dealing with banks abroad.

Seven countries still remain on list: Cook Islands, Guatemala, Indonesia, Myanmar, Nauru, Nigeria and Philippines.

Also today, the FATF President expressed support for the continuation of the successful collaboration between FATF and the IMF [International Monetary Fund] and World Bank. The three institutions recently conducted a 12-month pilot program to ensure the consistent application of anti-money laundering and anti-terrorist financing standards worldwide. The IMF and World Bank used the FATF's 40 Recommendations on Money Laundering and Eight Special Recommendations Against Terrorist Financing to assess countries' financial systems during the program.

The FATF encouraged the IMF and World Bank to continue such assessments on a comprehensive, uniform and permanent basis as a regular part of their Financial Sector Assessment Program.

Before the start of the Plenary meeting earlier this week, the FATF held a seminar on the international fight against the financial war on terrorism. Attended by 44 countries, the seminar addressed the risks posed by alternative remittance systems, cash couriers, non-profit organizations and the links between narcotics trafficking and terrorist financing.

Attendees expressed the need for improved resources to better collect and share information regarding terrorist financing throughout the global economy. The FATF, a 31-member body, is committed to ensuring the implementation of practical steps to help the international community achieve this goal.

"This is an important dialogue as the international community adapts to the changing complexion of terrorist financing and the threat it poses to all of us," Zarate continued.

The seminar came after the Finance Ministers and Central Bank Governors of the G-7 [Group of Seven countries -- United States, France, Germany, Japan, Italy, Canada and the United Kingdom] and invited countries made a political commitment to combat terrorist financing during the September 2003 meeting in Dubai.