July 2, 2001

The Department Of Treasury Responds to FATF Money Laundering Report

Today the Treasury Department's Financial Crimes Enforcement Network (FinCEN) updated its advice to U.S. banks and financial institutions following the recent FATF announcement that the Bahamas, the Cayman Islands, Liechtenstein, and Panama have implemented significant legal reforms to combat money laundering.

In conjunction with a review of FATF's findings, and following technical assistance provided by FinCEN to these countries, FinCEN informed banks and other financial institutions that these four countries now have counter-money laundering regimes that generally comply with international standards. The Treasury Department expects that these countries will continue to take the necessary steps to implement their reforms and will continue to cooperate in the global fight against money laundering.

Additionally, FinCEN will be assessing appropriate guidance for financial institutions with respect to the six countries that were added to the FATF list of "non-cooperative" countries: Burma, Egypt, Guatemala, Hungary, Indonesia, and Nigeria.

The FinCEN advisories will remain in force for the following countries, which also remain on FATF's non-cooperation list: Cook Islands, Dominica, Israel, Lebanon, Marshall Islands, Nauru, Niue, the Philippines, Russia, St. Kitts & Nevis, and St. Vincent & the Grenadines. United States officials stand ready to provide appropriate technical assistance to these jurisdictions as they work to remedy the deficiencies in their counter-money laundering systems.

Copies of the advisories can be found on the FinCEN web site: www.ustreas.gov/fincen. See in particular Advisories 9+12 regarding the BMPE and Colon Free Zone in reference to Panama. Additional information can also be found on the FATF web site: www.oecd.org/fatf.