money laundering and financial crimes country database

8/22/2019 Money Laundering and Financial Crimes Country Database

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United States Department of State

Bureau for International Narcotics and Law

Enforcement Affairs

Money Laundering and

Financial Crimes

Country Database

June 2013


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INCSR 2013 Volume II Country Database

i

Table of Contents

Money Laundering/Financial Crimes Countries ............................................................. 2Countries and Jurisdictions Table ......................................................................................................... 3

Comparative Table Key ............................................................................................................................ 4Comparative Table ................................................................................................................................... 6

All Money Laundering and Financial Crimes Countries/Jurisdictions ................................ 16Afghanistan ......................................................................................................................................... 16Albania ................................................................................................................................................ 18Algeria ................................................................................................................................................. 21Andorra ................................................................................................................................................ 23Angola ................................................................................................................................................. 24Anguilla ................................................................................................................................................ 26Antigua and Barbuda .......................................................................................................................... 28Argentina ............................................................................................................................................. 30Armenia ............................................................................................................................................... 33Aruba ................................................................................................................................................... 34Australia .............................................................................................................................................. 36Austria ................................................................................................................................................. 38Azerbaijan ........................................................................................................................................... 40Bahamas ............................................................................................................................................. 42Bahrain ................................................................................................................................................ 44Bangladesh ......................................................................................................................................... 46Barbados ............................................................................................................................................. 48Belarus ................................................................................................................................................ 50Belgium ............................................................................................................................................... 52Belize ................................................................................................................................................... 54Benin ................................................................................................................................................... 56Bermuda .............................................................................................................................................. 58Bolivia .................................................................................................................................................. 60Bosnia and Herzegovina ..................................................................................................................... 62Botswana ............................................................................................................................................. 65Brazil ................................................................................................................................................... 67British Virgin Islands ............................................................................................................................ 69Brunei .................................................................................................................................................. 71Bulgaria ............................................................................................................................................... 72Burkina Faso ....................................................................................................................................... 75Burma .................................................................................................................................................. 76Burundi ................................................................................................................................................ 79Cambodia ............................................................................................................................................ 81Cameroon ............................................................................................................................................ 83Canada ................................................................................................................................................ 85Cape Verde ......................................................................................................................................... 87Cayman Islands .................................................................................................................................. 88Central African Republic ..................................................................................................................... 90Chad .................................................................................................................................................... 92Chile .................................................................................................................................................... 93China, Peoples Republic of ................................................................................................................ 95Colombia ............................................................................................................................................. 98Comoros ............................................................................................................................................ 101Congo, Democratic Republic of ........................................................................................................ 102Congo, Republic of ............................................................................................................................ 104Cook Isands ...................................................................................................................................... 106


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Costa Rica ......................................................................................................................................... 108Cote dIvoire ...................................................................................................................................... 110Croatia ............................................................................................................................................... 112Cuba .................................................................................................................................................. 115Curacao ............................................................................................................................................. 117Cyprus ............................................................................................................................................... 119Czech Republic ................................................................................................................................. 123Denmark ............................................................................................................................................ 125Djibouti .............................................................................................................................................. 127Dominica ........................................................................................................................................... 129Dominican Republic .......................................................................................................................... 130Ecuador ............................................................................................................................................. 132Egypt ................................................................................................................................................. 135El Salvador ........................................................................................................................................ 136Equatorial Guinea ............................................................................................................................. 138Eritrea ................................................................................................................................................ 140Estonia .............................................................................................................................................. 142Ethiopia ............................................................................................................................................. 143Fiji ...................................................................................................................................................... 145Finland ............................................................................................................................................... 146France ............................................................................................................................................... 148Gabon ................................................................................................................................................ 150Gambia .............................................................................................................................................. 152Georgia .............................................................................................................................................. 153Germany ............................................................................................................................................ 155Ghana ................................................................................................................................................ 157Gibraltar ............................................................................................................................................. 160Greece ............................................................................................................................................... 161Grenada ............................................................................................................................................ 164Guatemala ......................................................................................................................................... 165Guernsey ........................................................................................................................................... 168Guinea ............................................................................................................................................... 170Guinea-Bissau ................................................................................................................................... 172Guyana .............................................................................................................................................. 174Haiti ................................................................................................................................................... 176Holy See (Vatican City) ..................................................................................................................... 178Honduras ........................................................................................................................................... 180Hong Kong ........................................................................................................................................ 182Hungary ............................................................................................................................................. 184Iceland ............................................................................................................................................... 185India ................................................................................................................................................... 187Indonesia ........................................................................................................................................... 190Iran .................................................................................................................................................... 192Iraq .................................................................................................................................................... 195Ireland ............................................................................................................................................... 197Isle of Man ......................................................................................................................................... 199Israel .................................................................................................................................................. 200

Italy .................................................................................................................................................... 202Jamaica ............................................................................................................................................. 204Japan ................................................................................................................................................. 205Jersey ................................................................................................................................................ 208Jordan ............................................................................................................................................... 210Kazakhstan ........................................................................................................................................ 212Kenya ................................................................................................................................................ 214Korea, Democratic Republic of ......................................................................................................... 217Korea, Republic of ............................................................................................................................. 219


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Kosovo .............................................................................................................................................. 221Kuwait ................................................................................................................................................ 223Kyrgyz Republic ................................................................................................................................ 225Laos ................................................................................................................................................... 227Latvia ................................................................................................................................................. 229Lebanon ............................................................................................................................................ 231Lesotho .............................................................................................................................................. 233Liberia ................................................................................................................................................ 235Libya .................................................................................................................................................. 237Liechtenstein ..................................................................................................................................... 239Lithuania ............................................................................................................................................ 240Luxembourg ...................................................................................................................................... 242Macau ................................................................................................................................................ 244Macedonia ......................................................................................................................................... 246Madagascar....................................................................................................................................... 248Malawi ............................................................................................................................................... 250Malaysia ............................................................................................................................................ 252Maldives ............................................................................................................................................ 254Mali .................................................................................................................................................... 256Malta .................................................................................................................................................. 258Marshall Islands ................................................................................................................................ 260Mauritania .......................................................................................................................................... 262Mauritius ............................................................................................................................................ 263Mexico ............................................................................................................................................... 265Micronesia, Federated States of ....................................................................................................... 267Moldova ............................................................................................................................................. 269Monaco .............................................................................................................................................. 271Mongolia ............................................................................................................................................ 272Montserrat ......................................................................................................................................... 274Montenegro ....................................................................................................................................... 276Morocco ............................................................................................................................................. 278Mozambique ...................................................................................................................................... 280Namibia ............................................................................................................................................. 282Nauru ................................................................................................................................................. 284Nepal ................................................................................................................................................. 285Netherlands ....................................................................................................................................... 287New Zealand ..................................................................................................................................... 289Nicaragua .......................................................................................................................................... 291Niger .................................................................................................................................................. 293Nigeria ............................................................................................................................................... 295Niue ................................................................................................................................................... 297Norway .............................................................................................................................................. 299Oman ................................................................................................................................................. 301Pakistan ............................................................................................................................................. 303Palau ................................................................................................................................................. 304Panama ............................................................................................................................................. 306Papua New Guinea ........................................................................................................................... 309

Paraguay ........................................................................................................................................... 311Peru ................................................................................................................................................... 314Philippines ......................................................................................................................................... 317Poland ............................................................................................................................................... 319Portugal ............................................................................................................................................. 321Qatar ................................................................................................................................................. 323Romania ............................................................................................................................................ 324Russia ............................................................................................................................................... 326Rwanda ............................................................................................................................................. 329


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Samoa ............................................................................................................................................... 330San Marino ........................................................................................................................................ 332Sao Tome & Principe ........................................................................................................................ 333Saudi Arabia ...................................................................................................................................... 335Senegal ............................................................................................................................................. 337Serbia ................................................................................................................................................ 339Seychelles ......................................................................................................................................... 341Sierra Leone ...................................................................................................................................... 343Singapore .......................................................................................................................................... 345Slovak Republic ................................................................................................................................ 347Slovenia ............................................................................................................................................. 349Solomon Islands ................................................................................................................................ 350Somalia ............................................................................................................................................. 352South Africa ....................................................................................................................................... 355South Sudan...................................................................................................................................... 357Spain ................................................................................................................................................. 358Sri Lanka ........................................................................................................................................... 361St. Kitts and Nevis ............................................................................................................................. 363St. Lucia ............................................................................................................................................ 365St. Maarten ........................................................................................................................................ 367St. Vincent and the Grenadines ........................................................................................................ 369Sudan ................................................................................................................................................ 371Suriname ........................................................................................................................................... 373Swaziland .......................................................................................................................................... 375Sweden ............................................................................................................................................. 376Switzerland ........................................................................................................................................ 378Syria .................................................................................................................................................. 380Taiwan ............................................................................................................................................... 383Tajikistan ........................................................................................................................................... 385Tanzania ............................................................................................................................................ 387Thailand ............................................................................................................................................. 390Timor-Leste ....................................................................................................................................... 392Togo .................................................................................................................................................. 394Tonga ................................................................................................................................................ 395Trinidad and Tobago ......................................................................................................................... 397Tunisia ............................................................................................................................................... 400Turkey ............................................................................................................................................... 401Turkmenistan..................................................................................................................................... 403Turks and Caicos .............................................................................................................................. 405Uganda .............................................................................................................................................. 407Ukraine .............................................................................................................................................. 409United Arab Emirates ........................................................................................................................ 411United Kingdom ................................................................................................................................. 414Uruguay ............................................................................................................................................. 416Uzbekistan ......................................................................................................................................... 418Vanuatu ............................................................................................................................................. 420Venezuela ......................................................................................................................................... 422

Vietnam ............................................................................................................................................. 424Yemen ............................................................................................................................................... 426Zambia .............................................................................................................................................. 428Zimbabwe .......................................................................................................................................... 430


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Money Laundering/Financial Crimes

Countries


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Money Laundering and Financial Crimes

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Countr ies and Jur isdictions Table

Countries/Jurisdictions of PrimaryConcern

Countries/Jurisdictions ofConcern

Other Countries/JurisdictionsMonitored

Afghanistan Latvia Albania Marshall Islands Andorra Maldives

Antigua and Barbuda Lebanon Algeria Moldova Anguilla Mali

Argentina Liechtenstein Angola Monaco Armenia Malta

Australia Luxembourg Aruba Mongolia Benin Mauritania

Austria Macau Azerbaijan Montenegro Bermuda Mauritius

Bahamas Mexico Bahrain Morocco Botswana Micronesia FS

Belize Netherlands Bangladesh Nicaragua Brunei Montserrat

Bolivia Nigeria Barbados Peru Burkina Faso Mozambique

Brazil Pakistan Belarus Poland Burundi Namibia

British Virgin Islands Panama Belgium Portugal Cameroon Nauru

Burma Paraguay Bosnia and

Herzegovina

Qatar Cape Verde Nepal

Cambodia Philippines Bulgaria Romania Central AfricanRepublic

New Zealand

Canada Russia Chile Saudi Arabia Chad Niger

Cayman Islands Singapore Comoros Senegal Congo, Dem Rep of Niue

China, People Rep Somalia Cook Islands Serbia Congo, Rep of Norway

Colombia Spain Cote dIvoire Seychelles Croatia Oman

Costa Rica St. Maarten Czech Republic Sierra Leone Cuba Palau

Curacao Switzerland Djibouti Slovak Republic Denmark Papua New Guinea

Cyprus Taiwan Ecuador South Africa Dominica Rwanda

Dominican Republic Thailand Egypt St. Kitts and Nevis Equatorial Guinea Samoa

France Turkey El Salvador St. Lucia Eritrea San Marino

Germany Ukraine Ghana St. Vincent Estonia Sao Tome & Principe

Greece United Arab Emirates Gibraltar Suriname Ethiopia Slovenia

Guatemala United Kingdom Grenada Syria Fiji Solomon Islands

Guernsey United States Guyana Tanzania Finland South Sudan

Guinea Bissau Uruguay Holy See Trinidad and Tobago Gabon Sri Lanka

Haiti Venezuela Honduras Turks and Caicos Gambia Sudan

Hong Kong Zimbabwe Hungary Vanuatu Georgia Swaziland

India Ireland Vietnam Guinea Sweden

Indonesia Jamaica Yemen Iceland Tajikistan

Iran Jordan Kyrgyz Republic Timor-Leste

Iraq Kazakhstan Lesotho Togo

Isle of Man Korea, North Liberia Tonga

Israel Korea, South Libya Tunisia

Italy Kosovo Lithuania Turkmenistan

Japan Kuwait Macedonia Uganda

Jersey Laos Madagascar Uzbekistan

Kenya Malaysia Malawi Zambia


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Comparative Table Key

The comparative table that follows the Glossary of Terms below identifies the broad range ofactions, effective as of December 31, 2012, that jurisdictions have, or have not, taken to combat

money laundering. This reference table provides a comparison of elements that includelegislative activity and other identifying characteristics that can have a relationship to ajurisdictions money laundering vulnerability. With the exception of the fifth item, all itemsshould be answered Y (yes) or N (no). Y is meant to indicate that legislation has beenenacted to address the captioned items. It does not imply full compliance with

international standards. All deficiencies within the countrys/jurisdictions AML/CFT regimeshould be explained in the Enforcement and implementation issues and comments section ofthe template.

Glossary of Terms

Criminalized Drug Money Laundering: The jurisdiction has enacted laws criminalizingthe offense of money laundering related to the drug trade.

Criminalized Beyond Drugs: The jurisdiction has enacted laws criminalizing the offenseof money laundering related to crimes other than those related to the drug trade.

Know Your Customer Provisions: By law or regulation, the government requires banksand/or other covered entities to adopt and implement Know Your Customer/Customer DueDiligence programs for their customers or clientele.

Report Large Transactions: By law or regulation, banks and/or other covered entities arerequired to report large transactions in currency or other monetary instruments to designatedauthorities.

Report Suspicious Transactions: By law or regulation, banks and/or other covered entitiesare required to report suspicious or unusual transactions to designated authorities. On theComparative Table the letter Y signifies mandatory reporting; P signifies reporting is notrequired but rather is permissible or optional; N signifies no reporting regime.

Maintain Records over Time: By law or regulation, banks and/or other covered entities arerequired to keep records, especially of large or unusual transactions, for a specified period oftime, e.g., five years.

Disclosure Protection - Safe Harbor: By law, the jurisdiction provides a safe harbordefense against civil and criminal liability to banks and/or other covered entities and theiremployees who provide otherwise confidential banking data to authorities in pursuit ofauthorized investigations.

Criminalize Tipping Off: By law, disclosure of the reporting of suspicious or unusualactivity to an individual who is the subject of such a report, or to a third party, is a criminaloffense

Financial Intelligence Unit: The jurisdiction has established an operative central, nationalagency responsible for receiving (and, as permitted, requesting), analyzing, anddisseminating to the competent authorities disclosures of financial information in order tocounter money laundering. An asterisk (*) reflects those jurisdictions that are not membersof the Egmont Group of FIUs.


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Cross-Border Transportation of Currency: By law or regulation, the jurisdiction hasestablished a declaration or disclosure system for persons transiting the jurisdictions borders,either inbound or outbound, and carrying currency or monetary instruments above a specifiedthreshold.

International Law Enforcement Cooperation: Jurisdiction cooperates with authorized

investigations involving or initiated by third party jurisdictions, including sharing of recordsor other financial data, upon request. No known legal impediments to cooperation exist incurrent law.

System for Identifying and Forfeiting Assets: The jurisdiction has established a legallyauthorized system for the tracing, freezing, seizure, and forfeiture of assets identified asrelating to or generated by money laundering activities.

Arrangements for Asset Sharing: By law, regulation or bilateral agreement, thejurisdiction permits sharing of seized assets with third party jurisdictions that assisted in theconduct of the underlying investigation.

Criminalized the Financing of Terrorism: The jurisdiction has criminalized the provisionof material support to terrorists, terrorist activities, and/or terrorist organizations as required

by the UN International Convention for the Suppression of the Financing of Terrorism andUN Security Council Resolution 1373.

Report Suspected Terrorist Financing: By law or regulation, banks and/or other coveredentities are required to record and report to designated authorities transactions suspected torelate to the financing of terrorists, terrorist groups or terrorist activities.

Able to Freeze Terrorist Assets w/o Delay: The government has an independent nationalsystem and mechanism for freezing terrorist assets in a timely manner (including but notlimited to bank accounts, other financial assets, airplanes, autos, residences, and/or otherproperty belonging to terrorists or terrorist organizations).

States Party to 1988 UN Drug Convention: States party to the 1988 United NationsConvention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, or a

territorial entity to which the application of the Convention has been extended by a party tothe Convention.

States Party to the UN International Convention for the Suppression of the Financing ofTerrorism: States party to the International Convention for the Suppression of theFinancing of Terrorism, or a territorial entity to which the application of the Convention hasbeen extended by a party to the Convention.

States Party to the UN Convention against Transnational Organized Crime: States party tothe United Nations Convention against Transnational Organized Crime (UNTOC), or aterritorial entity to which the application of the Convention has been extended by a party tothe Convention.

States Party to the UN Convention against Corruption: States party to the United Nations

Convention against Corruption (UNCAC), or a territorial entity to which the application ofthe Convention has been extended by a party to the Convention.

US or International Sanctions/Penalties: The U.S., another jurisdiction and/or aninternational organization, e.g., the UN or FATF, has imposed sanctions or penalties againstthe jurisdiction. A countrys inclusion in the FATFs International Cooperation ReviewGroup exercise is not considered a sanction or penalty unless the FATF recommendscountermeasures against the country/jurisdiction.


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Comparative Table

Y is meant to indicate that legislation has been enacted to address the captioned items. It does notimply full compliance with international standards. Please see the individual country reports for

information on any deficiencies in the adopted laws/regulations.

ActionsbyGovernments

CriminalizedDrug

MoneyLaundering

CriminalizedMLB

eyondDrugs

Know-Your-Custo

merProvisions

ReportLargeTransactions

ReportSuspiciou

sTransactions(YPN)

MaintainRecords

OverTime

DisclosureProtec

tion-SafeHarbor

CriminalizeTipp

ingOff

Cross-BorderTra

nsportationofCurrency

FinancialIntellige

nceUnit(*)

IntlLaw

Enforcem

entCooperation

SystemforIdentifying/ForfeitingAssets

Arrangementsfor

AssetSharing

CriminalizedFina

ncingofTerrorism

ReportSuspected

TerroristFinancing

AbletoFreezeTe

rroristAssetsw/oDelay

StatesPartyto19

88UNDrugConvention

StatesPartytoIntl.TerrorFinanceConv.

StatesPartytoUN

TOC

StatesPartytoUN

CAC

Govt/Jurisdiction

Afghanistan Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N Y Y Y Y

Albania Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Algeria Y Y Y N Y Y Y Y Y Y* Y Y N Y Y N Y Y Y Y

Andorra Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Angola Y Y Y Y Y Y Y N Y Y* N N N N N N Y Y Y Y

Anguilla1 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N N

Antigua and

BarbudaY Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Argentina Y Y Y Y Y Y Y N Y Y Y N N Y N N Y Y Y Y

Armenia Y Y Y Y Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y

Aruba2 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Australia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

1The UK extended its application of the 1988 UN Drug Convention to Anguilla, Bermuda, British Virgin Islands, Cayman

Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Montserrat, and Turks and Caicos. The International Convention for theSuppression of Terrorism Financing has been extended to the British Virgin Islands, Guernsey, Isle of Man, and Jersey.The UNCAC has been extended to British Virgin Islands, Guernsey, Isle of Man, and Jersey. The UNTOC has beenextended to the British Virgin Islands, Cayman Islands, Gibraltar, and the Isle of Man.

2The Netherlands extended its application of the 1988 UN Drug Convention and the International Convention for the

Suppression of Terrorism Financing to Aruba and Curacao. The UNTOC has been extended to Aruba.


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ActionsbyGove

rnments

CriminalizedDrugMoney

Laundering

CriminalizedMLBeyondDrugs

Know-Your-CustomerPro

visions

ReportLargeTransaction

s

ReportSuspiciousTransactions(YPN)

MaintainRecordsOverTi

me

DisclosureProtection-S

afeHarbor

CriminalizeTippingOff

Cross-BorderTransportationofCurrency

FinancialIntelligenceUni

t(*)

IntlLaw

EnforcementCoo

peration

SystemforIdentifying/Fo

rfeitingAssets

ArrangementsforAssetS

haring

CriminalizedFinancingofTerrorism

ReportSuspectedTerrori

stFinancing

AbletoFreezeTerroristA

ssetsw/oDelay

StatesPartyto1988UND

rugConvention


StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Austria Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Azerbaijan Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Bahamas Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y

Bahrain Y Y Y N Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y

Bangladesh Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y Y N Y

Barbados Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Belarus Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Belgium Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Belize Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Benin Y Y Y N Y Y Y Y Y Y* Y Y N N Y Y Y Y Y Y

Bermuda1

Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y N N N

Bolivia Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y Y Y Y

Bosnia &

HerzegovinaY Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Botswana Y Y Y Y Y Y Y Y Y Y* Y N N N N N Y Y Y Y

Brazil Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N Y Y Y Y

British VirginIslands

1 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Brunei Y Y Y Y Y Y Y Y Y Y* Y Y N N N Y Y Y Y Y

Bulgaria Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Burkina Faso Y Y Y Y Y Y Y Y N Y* Y N N Y Y Y Y Y Y Y

Burma Y Y Y Y Y Y Y Y Y Y* Y Y N N N N Y Y Y Y

Burundi Y Y Y Y Y Y N N N Y* Y Y N Y Y N Y N Y Y

Cambodia Y Y Y Y Y Y Y Y Y Y* Y N N Y Y Y Y Y Y Y


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ActionsbyGove

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Laundering



visions


s



me


afeHarbor



FinancialIntelligenceUnit(*)

IntlLaw

EnforcementCoo

peration


rfeitingAssets


haring



stFinancing


ssetsw/oDelay


rugConvention


StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Cameroon Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Canada Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Cape Verde Y Y Y Y Y Y Y N Y Y* Y Y N N N N Y Y Y Y

Cayman

Islands1

Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N

Central

African Rep.Y Y Y N Y Y Y Y N N Y N N Y Y Y Y Y Y Y

Chad Y Y Y N Y Y Y Y N Y* Y N N Y Y Y Y Y Y N

Chile Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

China Y Y Y Y Y Y Y Y Y Y* N Y N Y Y N Y Y Y Y

Colombia Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Comoros Y Y N N N N Y Y Y Y* Y N N Y Y N Y Y Y Y

Congo, Dem Rep.of

Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y N N

Congo, Rep. of Y Y Y Y Y Y Y Y Y Y* Y N N Y Y Y Y Y N Y

Cook Islands Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Costa Rica Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Cote dIvoire Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y

Croatia Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Cuba Y Y Y Y Y Y Y Y Y Y* N Y N Y Y Y Y Y Y Y

Curacao2

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N

Cyprus3 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Area administered

by Turkish Cypriots

Y Y Y Y Y Y N N Y Y N Y N Y Y Y N/A

N/A

N/A

N/A


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visions


s



me


afeHarbor




IntlLaw

EnforcementCoo

peration


rfeitingAssets


haring



stFinancing


ssetsw/oDelay


rugConvention


StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Czech Republic Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N

Denmark Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Djibouti Y Y Y N Y Y Y Y N Y* Y Y N Y Y Y Y Y Y Y

Dominica Y Y Y N Y Y Y Y Y Y Y Y N Y Y Y Y Y N Y

Dominican

RepublicY Y Y Y Y Y N N Y Y* Y Y Y Y Y Y Y Y Y Y

Ecuador Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y Y

Egypt Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

El Salvador Y Y Y Y Y Y Y N Y Y Y Y Y Y N Y Y Y Y Y

Equatorial

Guinea

Y Y Y Y Y Y Y Y N N N Y N Y Y Y N Y Y N

Eritrea N N N Y Y Y N N Y Y* N N N N N N Y N N N

Estonia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Ethiopia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Fiji Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y N Y

Finland Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

France Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Gabon Y Y Y Y Y Y N N N Y Y N N Y Y N Y Y Y Y

Gambia Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y N Y N

Georgia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Germany Y Y Y N Y Y Y N Y Y Y Y Y Y Y Y Y Y Y N

Ghana Y Y Y N Y Y Y Y Y Y* Y Y N Y Y N Y Y Y Y


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Laundering



visions


s



me


afeHarbor




IntlLaw

EnforcementCoo

peration


rfeitingAssets


haring



stFinancing


ssetsw/oDelay


rugConvention


StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Gibraltar1

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N Y N

Greece Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Grenada Y Y Y N Y Y Y Y Y Y Y Y N Y Y Y Y Y Y N

Guatemala Y Y Y Y Y Y N N Y Y Y Y N Y Y Y Y Y Y Y

Guernsey1 Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y

Guinea Y Y Y N Y Y Y Y N N Y N N N N N Y Y Y N

Guinea-Bissau Y Y Y Y Y Y Y N N N N Y Y Y N Y Y Y Y Y

Guyana Y Y Y Y Y Y Y N Y Y* Y Y N Y Y Y Y Y Y Y

Haiti Y Y Y Y Y Y Y Y N Y* Y Y Y N N N Y Y Y Y

Holy See Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y N

Honduras Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Hong Kong4 Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y

Hungary Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Iceland Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y India Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Indonesia Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N Y Y Y Y

Iran Y Y Y N Y Y N N N Y* N N N N N N Y N N Y

Iraq Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y N Y Y

Ireland Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Isle of Man

1

Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Israel Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Italy Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

4The Peoples Republic of China extended the 1988 UN Drug Convention, the International Convention for the Suppression

of Terrorism Financing, the UNTOC and the UNCAC to the special administrative regions of Hong Kong and Macau.


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IntlLaw

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haring



stFinancing


ssetsw/oDelay


rugConvention


StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Jamaica Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y Y

Japan Y Y N Y Y Y Y Y Y Y Y Y N Y Y N Y Y N N

Jersey Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y

Jordan Y Y Y N Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y

Kazakhstan Y Y Y Y Y Y Y N Y Y Y Y N Y Y N Y Y Y Y

Kenya Y Y Y N Y Y Y Y Y Y* Y Y Y N N N Y Y Y Y

Korea, NorthY Y N/

AN/A

N/A

N/A

N/A

N/A

N/A

N/A N N/A

N/A

N/A

N/A

N/A

Y N N N

Korea, South Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y

Kosovo Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y N N N N

Kuwait Y Y Y Y Y Y Y Y Y Y* Y Y Y N N N Y N Y Y

Kyrgyz Republic Y Y Y Y Y Y N N Y Y Y N N Y Y N Y Y Y Y

Laos Y Y N N Y Y N N Y Y* Y N N N N N Y Y Y Y

Latvia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Lebanon Y Y Y N Y Y Y Y N Y Y Y N Y Y Y Y N Y Y

Lesotho Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y Y

Liberia Y Y Y Y Y Y Y Y Y N N N N N N N Y Y Y Y

Libya Y Y Y N Y Y N N N Y* N N N N N N Y Y Y Y

Liechtenstein Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Lithuania Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Luxembourg Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Macau

Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y

Macedonia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Madagascar Y Y Y N Y Y Y Y Y Y* Y Y N N N N Y Y Y Y


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StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

Malawi Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Malaysia Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Maldives Y N Y Y Y N Y N N Y* Y Y N Y Y N Y Y N Y

Mali Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y

Malta Y Y Y N Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Marshall Islands Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Mauritania Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y Y

Mauritius Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Mexico Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y

Micronesia, FS Y Y Y N Y Y Y Y Y Y* Y Y N N N Y Y Y Y Y

Moldova Y Y Y Y Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y

Monaco Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y N

Mongolia Y Y Y Y Y Y N N Y Y Y N N Y Y N Y Y Y Y

Montenegro Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Montserrat1

Y Y Y N Y Y Y Y N Y* Y Y Y Y Y Y Y N N N

Morocco Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Mozambique Y Y Y N Y Y N N Y Y* Y Y N N N N Y Y Y Y

Namibia Y Y Y N Y Y Y Y N Y Y Y N N N N Y N Y Y

Nauru Y N Y Y Y Y Y Y Y Y* N Y N Y Y Y N Y Y Y

Nepal Y Y Y Y Y N N Y Y Y* N Y N Y Y Y Y Y Y Y

Netherlands Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

New Zealand Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Nicaragua Y Y Y Y Y Y Y Y Y N Y Y Y Y Y N Y Y Y Y

Niger Y Y Y N Y Y N Y Y Y* N Y N Y Y N Y Y Y Y


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StatesPartytoUNCAC

Govt/Jurisdiction

Nigeria Y Y Y Y Y Y N Y Y Y Y Y N Y Y N Y Y Y Y

Niue Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N Y Y Y N

Norway Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Oman Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y Y Y N

Pakistan Y Y Y N Y Y Y Y N Y* Y N N Y Y Y Y Y Y Y

Palau Y Y Y Y Y Y Y Y Y Y* Y N N Y Y Y N Y N Y

Panama Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y

Papua New

GuineaY Y Y Y Y Y Y Y N Y* Y Y N N N N N Y N Y

Paraguay Y Y Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y

Peru Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y

Philippines Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Poland Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Portugal Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Qatar Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Romania Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Russia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Rwanda Y Y Y Y Y Y N N Y Y* Y Y N Y Y Y Y Y Y Y

St. Kitts and

Nevis

Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

St. Lucia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N

St. Maarten Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y N N

St. Vincent and

the GrenadinesY Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y N

Samoa Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N N


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StatesPartytoUNTOC

StatesPartytoUNCAC

Govt/Jurisdiction

San Marino Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Sao Tome

And PrincipeY Y N N Y N N Y N Y* N N N N Y N Y Y Y Y

Saudi Arabia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Senegal Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Serbia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y

Seychelles Y Y N N Y Y Y Y N Y* Y Y N Y Y Y Y Y Y Y

Sierra Leone Y Y Y Y Y Y Y Y Y Y* Y Y N N N N Y Y N Y

Singapore Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Slovak Republic Y Y Y N Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Slovenia Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Solomon

IslandsY Y Y Y Y Y Y Y Y Y Y Y N Y Y N N Y N Y

Somalia N N N N N N N N N N N N N N N N N N N N

South Africa Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

South Sudan Y Y N N N N N N N N N N N N N N N N N N

Spain Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Sri Lanka Y Y Y Y Y Y Y Y N Y Y N N Y Y N Y Y Y Y

Sudan Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y Y Y N

Suriname Y Y Y N Y Y Y Y Y Y* Y Y Y Y Y Y Y N Y N

Swaziland Y Y Y Y Y Y Y Y Y Y* Y N N Y Y Y Y Y Y Y

Sweden Y Y Y N Y Y Y Y N Y Y Y N Y Y Y Y Y Y Y

Switzerland Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Syria Y Y Y Y Y Y Y Y Y Y N Y N Y Y N Y Y Y N


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Govt/Jurisdiction

Taiwan Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N N N N

Tajikistan Y Y Y Y Y Y Y N Y Y Y N N Y Y N Y Y Y Y

Tanzania Y Y Y N Y Y Y Y N Y* Y Y N Y Y N Y Y Y Y

Thailand Y Y Y Y Y Y Y N Y Y Y Y Y Y Y N Y Y N Y

Timor-Leste Y Y Y N Y Y N Y Y Y* Y Y N Y Y Y N N Y Y

Togo Y Y Y N Y Y Y Y Y Y* Y Y N Y Y Y Y Y Y Y

Tonga Y Y Y Y Y Y Y Y Y Y* Y Y N Y Y Y Y Y N N

Trinidad and

Tobago

Y Y Y Y Y Y Y Y Y Y* Y Y Y Y Y Y Y Y Y Y

Tunisia Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Turkey Y Y Y N Y Y Y Y Y Y Y Y N Y Y N Y Y Y Y Turkmenistan Y Y Y Y Y Y N Y Y Y* Y Y N Y Y Y Y Y Y Y

Turks and

Caicos1

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N N

Uganda N N Y Y Y Y N N N N Y N N Y Y Y Y Y Y Y

Ukraine Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y

UAE Y Y Y Y Y Y Y N Y Y Y Y N Y Y Y Y Y Y Y

United Kingdom Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Uruguay Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Uzbekistan Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Vanuatu Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N

Venezuela Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N Y Y Y Y

Vietnam Y Y Y Y Y Y Y N Y Y* Y N N Y Y N Y Y Y Y

Yemen Y Y Y Y Y Y Y Y Y Y* Y N N Y Y N Y Y Y Y

Zambia Y Y Y N Y Y Y Y Y Y* Y Y Y Y Y Y Y N Y Y

Zimbabwe Y Y Y N Y Y Y Y Y Y* Y Y Y Y Y Y Y N Y Y


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All Money Laundering and Financial

Crimes Countries/Jurisdictions

Afghanistan

Afghanistan is not a regional or offshore center. Terrorist and insurgent financing, moneylaundering, cash smuggling, abuse of informal value transfer systems, and other illicit activitiesdesigned to finance organized criminal activity continue to pose serious threats to the securityand development of Afghanistan. Afghanistan remains a major narcotics trafficking andproducing country, and is the worlds largest opium producer and exporter. The narcotics trade,corruption and contract fraud are major sources of illicit revenue and laundered funds.Corruption permeates all levels of Afghan government and society and the country rates very

poorly on various indices.

The growth in Afghanistans banking sector has slowed considerably in recent years; andtraditional payment systems, particularly hawala networks, remain significant in their reach andscale. The corrupt government and weaknesses in the banking sector incentivize the use ofinformal mechanisms and exacerbate the difficulty of developing a transparent formal financialsector in Afghanistan. The unlicensed and unregulated hawaladars in major drug areas such asHelmand likely account for a substantial portion of the illicit proceeds being moved in thefinancial system. Afghan business consortiums that control both hawaladars and banks allowcriminal elements within these consortiums to manipulate domestic and international financialnetworks to send, receive, and launder illicitly-derived monies or funds intended for criminal,

insurgent, or terrorist activities. The rapid depreciation of the Iranian rial in October 2012 led toincreased demand for U.S. dollars in Iran and a reported increase in cash smuggling fromAfghanistan to Iran.

For additional information focusing on terrorist financing, please refer to the Department ofStates Country Reports on Terrorism, which can be found here:http://www.state.gov/j/ct/rls/crt/

DO FI NANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATED

TO INTERNATIONAL NARCOTICS TRAFF ICKING THAT INCLUDE SIGNIF ICANT

AMOUNTS OF US CURRENCY; CURRENCY DERIVED FROM I LL EGAL SALES IN

THE U.S.; OR THAT OTHERWISE SIGNIF ICANTLY AFFECT THE U.S.:YES

CRIMI NALI ZATION OF MONEY LAUNDERING:All serious crimes approach or list approach to predicate crimes: All serious crimesAre legal persons covered: criminall y: YES civilly:NO

KNOW-YOUR-CUSTOMER (KYC) RULES:Enhanced due dil igence procedures for PEPs: Foreign:YES Domestic:YES
http://www.state.gov/g/ct/rls/crt/http://www.state.gov/g/ct/rls/crt/http://www.state.gov/g/ct/rls/crt/http://www.state.gov/g/ct/rls/crt/


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KYC covered enti ties:Central Bank of Afghanistan (DAB), banks, registered money servicebusinesses (MSBs), insurance companies, dealers in precious metals and stones, lawyers,accountants, securities dealers, and real estate agents

REPORTING REQUIREMENTS:

Number of STRs received and time frame: 684 in 2012Number of CTRs received and time frame: 1,921,129 in 2012STR covered enti ti es:Banks, MSBs, hawaladars, insurance companies and securities dealers

MONEY LAUNDERING CRIM INAL PROSECUTIONS/CONVICTIONS:

Prosecutions:22 in 2012Convictions: 0

RECORDS EXCHANGE MECHANISM :With U.S.: MLAT:NO Other mechanism:YESWith other governments/jur isdictions:YES

Afghanistan is a member of the Asia/Pacific Group on Money Laundering (APG), a FinancialAction Task Force-style regional body. Its most recent mutual evaluation can be found here:http://www.apgml.org/documents/docs/17/Afghanistan%20-%20published%20DAR.pdf

ENFORCEMENT AND IMPLEMENTATION I SSUES AND COMMENTS:

The Government of Afghanistan (GOA) has no formal extradition or mutual legal assistancearrangements with the United States. Requests for extradition and mutual legal assistance areprocessed on an ad hoc basis, with assistance from the Afghan Attorney Generals Office. Thegovernment should adopt the drafted extradition-related legislation which is pending in Afghanparliament.

Using Presidential executive orders the GOA has frozen bank accounts owned by hawalanetworks listed under UNSCR 1988. There are no instances of seized bank accounts, and thereis no mechanism for asset sharing. The GOA should increase the capacity of enforcementofficers, prosecutors, and judges to provide them a better understanding of the basis for seizingand forfeiting assets.

Corruption and insufficient political will affect Afghanistans ability to regulate institutions andenforce relevant legislation. Limited resources and lack of technical expertise and infrastructurealso hamper effective regulatory oversight. Dealers in precious metals and stones, lawyers,accountants, and real estate agents are not supervised in Afghanistan. Insurance companies andsecurities dealers are technically under the regulatory regime and are required to file STRs, butthere is no compliance or enforcement. The government should move to ensure these sectors areregulated and comply with anti-money laundering/combating the financing of terrorism(AML/CFT) regulations.

Less than 5% of the Afghan population uses banks, depending instead on the entrenched hawalasystem, which provides a range of financial and non-financial business services in local,
http://www.apgml.org/documents/docs/17/Afghanistan%20-%20published%20DAR.pdfhttp://www.apgml.org/documents/docs/17/Afghanistan%20-%20published%20DAR.pdfhttp://www.apgml.org/documents/docs/17/Afghanistan%20-%20published%20DAR.pdf


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regional, and international markets. Approximately 90% of financial transactions run throughthe hawala system, including foreign exchange transactions, funds transfers, micro and tradefinance, as well as some deposit-taking activities. There is not a clear division between thehawala system and formal financial sector. Hawaladars often keep accounts at banks and usewire transfer services to settle their balances with other hawaladars abroad. Due to limited bank

branch networks, banks occasionally use hawaladars to transmit funds to hard-to-reach areaswithin Afghanistan. Afghanistans financial intelligence unit (FIU) reports that no MSBs orhawaladars have ever submitted STRs.

The GOA should issue the necessary regulatory instruments to increase the number ofMSB/hawala inspections, and expand implementation of the MSB/hawala licensing program.The GOA also should create an outreach program to notify and educate hawaladars about thelicensing and STR filing processes.

Border security continues to be a major challenge throughout Afghanistan, with the countrys 14official border crossings under central government control. Cargo is often exempted from any

screening or inspection due to corruption at the border crossings and customs depots. Outside ofofficial border crossings, most border areas are under-policed or not policed at all, and areparticularly susceptible to cross-border trafficking, trade-based money laundering, and bulk cashsmuggling. Kabul International Airport lacks stringent inspection controls for all passengers,and includes a VIP lane that does not require subjects to undergo any inspections or controls.The GOA should strengthen inspection controls for airport passengers.

Afghanistans Central Bank reported that approximately $4.6 billion in cash left Afghanistan viaKabul International Airport in 2011, exceeding Afghanistans official revenue of about $2billion. Tracking cash movements across borders or through airports has become increasinglydifficult with implementation of an executive order that makes it illegal to take more than$20,000 out of the country, but eliminates the need to report outbound currency.

Afghanistans laws related to terrorist financing are not in line with international standards anddo not criminalize all elements of the terrorist financing offense. Afghanistan has taken stepstowards improving its AML/CFT regime, including by establishing high level AML/CFTcoordination mechanisms. However, certain strategic AML/CFT deficiencies remain.Afghanistan should continue to work to adequately criminalize money laundering and terroristfinancing; establish and implement an adequate legal framework for identifying, tracing andfreezing terrorist assets; implement an adequate AML/CFT supervisory and oversight programfor all financial sectors; establish and implement adequate procedures for the confiscation ofassets related to money laundering; establish a fully operational and effectively functioning FIU;and establish and implement effective controls for cross-border cash transactions.

Albania

Albania is not an important regional financial or offshore center; however, the country remains atsignificant risk for money laundering due to rampant corruption and weak legal and governmentinstitutions. Albania also has a large cash economy and significant money flows from abroad inthe form of remittances.


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Albania has a significant black market for certain smuggled goods, mainly tobacco, jewelry,stolen cars, and mobile phones, due to its high level of consumer imports and weak customscontrols. Albania is a transit country for Afghan heroin smuggled to Western Europe and servesas a key gateway for heroin distribution throughout Europe. Local production of marijuana is

also on the rise for domestic and European use. Albania serves as a base of operations forregional organized crime organizations as illicit proceeds are easily laundered, with real estateand business development projects being the most popular methods.

Terrorist financing remains a threat in Albania, as during the last decade government officialshave taken action in several cases involving individuals and non-profit organizations suspectedof financing terrorist activities.

For additional information focusing on terrorist financing, please refer to the Department ofStates Country Reports on Terrorism, which can be found here:http://www.state.gov/j/ct/rls/crt/

DO FI NANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATEDTO INTERNATIONAL NARCOTICS TRAFF ICKING THAT INCLUDE SIGNIF ICANT


THE U.S.; OR THAT OTHERWISE SIGNIF ICANTLY AFFECT THE U.S.:NO

CRIMI NALI ZATION OF MONEY LAUNDERING:All serious crimes approach or list approach to predicate crimes: All serious crimesAre legal persons covered: criminall y: YES civilly: YES

KNOW-YOUR-CUSTOMER (KYC) RULES:Enhanced due dil igence procedures for PEPs: Foreign:NO Domestic:YESKYC covered enti ties:Banks; agricultural credit institutions; life insurance companies;money exchangers; accountants, notaries, and lawyers; gaming centers and casinos; autodealers; postal services; securities dealers; real estate agents; and travel agencies


Number of STRs received and time frame: 403: January 1 to November 30, 2012Number of CTRs received and time frame:1,309,923: January 1 to November 30, 2012STR covered enti ti es:Commercial banks; non-banking financial institutions; foreignexchange offices; savings/credit companies and their unions; postal services that performpayment services; issuers or managers of debit and credit cards, checks, travelers checks,payment orders, electronic money, or other similar instruments; stock markets and securitiesagents and brokers; life insurance or re-insurance companies, agents or intermediaries;pension funds; the State Authority Responsible for the Administration and Sale of PublicProperty and property transfer agents; games of chance, casinos and race tracks of any form;lawyers, notaries and other legal representatives; real estate agents and appraisers;accountants and financial consultants; and the Agency of Legalization, Urbanization and theIntegration of Informal Constructions/Zones



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Prosecutions:4: January 1 to September 30, 2012Convictions: 7: January 1 to November 30, 2012

RECORDS EXCHANGE MECHANISM :With U.S.: MLAT: NO Other mechanism:YES

With other governments/jur isdictions:YES

Albania is a member of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), a FinancialAction Task Force-style regional body. Its most recent mutual evaluation can be found here:http://www.coe.int/t/dghl/monitoring/moneyval/Countries/Albania_en.asp


Despite passing criminal code reforms in 2012, the Government of Albanias (GOA)implementation efforts are lacking, as evidenced by the low number of successful prosecutions

and convictions. Few steps have been taken to combat government corruption, especially in thejudiciary where it plays a major role in the inability of the government to successfully prosecutecriminal activity. Although the Parliament lifted official and judicial immunities in September2012, subsequent amendments to implement these changes have not yet been adopted. Actionshould be taken to effect these changes.

The Bank of Albania has established a task force to confirm banks compliance with customerverification rules although enforcement remains poor in practice. Additionally, the GOA shouldprovide for enhanced due diligence for foreign politically exposed persons (PEPs). There are anincreasing number of STRs coming from banks as that sector matures. While Albania providescurrency declaration forms at border crossing points, customs controls on cross-bordertransactions lack effectiveness due to a lack of resources, poor training and corruption ofcustoms officials.

The Albanian court system applies a difficult burden of proof in money laundering cases. Some,but not all, courts require a simultaneous conviction for the predicate offense before issuing aconviction for money laundering, even though the law specifically states that no predicateoffense is necessary. The Supreme Court has not issued a unified decision, so the law in thisarea remains in flux. Currently, no law criminalizes negligence by financial institutions inmoney laundering cases.

The Joint Investigative Unit to Fight Economic Crime and Corruption (JIU) in the Tirana DistrictProsecution Office focuses efforts and builds expertise in the investigation and prosecution offinancial crimes and corruption cases by bringing together members of the General ProsecutorsOffice, the Albanian State Police Financial Crimes Sector, the Ministry of Finances CustomsService and Tax Police, and the National Intelligence Service. The JIU also has liaisons from thefinancial intelligence unit, High State Audit, and the High Inspectorate for the Declaration andAudit of Assets. The JIU prosecutes money laundering cases within the District of Tirana. Sixadditional regional JIUs are in operation and have similar missions. These units have
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jurisdiction over corruption, money laundering, and other types of economic crime. The GOAshould continue to develop the effectiveness of these units.

Despite efforts to improve Albanias capacity to deal with financial crimes and moneylaundering, the GOAs AML/CFT regime is plagued by numerous technical deficiencies. The

GOA should take steps to address these deficiencies and work to deter corruption.

Algeria

The extent of money laundering through formal financial institutions in Algeria is thought to beminimal due to stringent exchange control regulations, a large segment of the economy that iscash-based, and an antiquated banking sector dominated by public banks. The restrictedconvertibility of the Algerian dinar enables the Central Bank to monitor all internationalfinancial operations carried out by public and private banking institutions. Notable criminalactivity includes trafficking, particularly of drugs and cigarettes, but also arms and stolenvehicles; kidnapping for ransom (KFR); theft; extortion; and embezzlement. Public corruptionremains a serious concern as does terrorism. Algerian authorities are increasingly concerned bycases of customs fraud and trade-based money laundering. Other risk areas for financial crimesinclude unregulated alternative remittance and currency exchange systems, tax evasion, abuse ofreal estate transactions, commercial invoice fraud, and a cash-based economy. Most moneylaundering is believed to occur primarily outside the formal financial system, given the largepercentage of financial transactions occurring in the informal gray and black economies ingeneral. Al-Qaida in the Islamic Maghreb, which originated in Algeria, is currently confined tooutlying areas but has a history of terrorist activity in Algiers and elsewhere in the country,including suicide attacks, KFR, roadside bomb attacks, and assassinations.

For additional information focusing on terrorist financing, please refer to the Department of

States Country Reports on Terrorism, which can be found here:http://www.state.gov/j/ct/rls/crt/

DO FI NANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATED

TO INTERNATIONAL NARCOTICS TRAFF ICKING THAT I NCLUDE SIGNIF ICANT


THE U.S.; OR THAT OTHERWISE SIGNIF ICANTLY AFFECT THE U.S.:NO

CRIMI NALI ZATION OF MONEY LAUNDERING:All serious crimes approach or list approach to predicate crimes:All serious crimesAre legal persons covered: criminall y: YES civilly: YES

KNOW-YOUR-CUSTOMER (KYC) RULES:Enhanced due dil igence procedures for PEPs: Foreign:YES Domestic:NOKYC covered enti ties:Banks, financial leasing institutions, and investment and shareholdingcompanies


Number of STRs received and time frame: 1,373 in 2012Number of CTRs received and time frame: Not applicable


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STR covered enti ti es:Banks, financial leasing institutions, and investment and shareholdingcompanies; real estate agents; car dealers; and other financial professionals who advise orcarry out transactions, such as deposits, exchanges, or other movements of capital


Prosecutions:Not availableConvictions: Not available

RECORDS EXCHANGE MECHANISM :With U.S.: MLAT:NO Other mechanism:YESWith other governments/jur isdictions:YES

Algeria is a member of the Middle East and North Africa Financial Action Task Force(MENAFATF), a Financial Action Task Force-style regional body. Its most recent mutualevaluation can be found here:http://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_

Algeria.pdf


In 2012, the Government of Algeria (GOA) implemented a package of policies intended todiminish the informal sector, motivate Algerian business people to formalize their activities, andgenerate revenue for the central government. A new law enacted in February 2012 extends thescope of KYC obligations to all financial institutions and expands the list of professionals whomust report suspicious activity to include real estate agents, car dealers, and financialprofessionals who advise or carry out transactions, such as deposits, exchanges, and othermovement of capital. The law also gives the GOA the authority to freeze and/or seize assetsbelonging to or destined for terrorists or a terrorist organization for a renewable one-monthperiod. However, the administrative processes associated with this new authority remainunclear, while the corresponding judiciary processes appear not to conform to internationalstandards. The GOA should move forward with the implementation of these laws, issueimplementing regulations where required, and continue to work to address the remainingdeficiencies in its anti-money laundering/counter-terrorist financing regime.

Specifically, the GOA should take significant legislative action to criminalize the financing ofterrorism for any purpose, i.e., regardless of a link to the planning or commission of a terroristact, and to establish a formal legal framework to implement the targeted financial sanctionsincluded in UNSCRs 1267 and 1373. According to the director of the Algerian FinancialIntelligence Cell (CTRF), the financial intelligence unit, the GOA is in the process of developinglegislation that would criminalize terrorist finance even where unconnected to a terrorist act. Thislegislation was delayed by the Algerian Presidents medical crisis.

The CTRF should be the focal point for receiving and analyzing suspicious activity reports, andfor the exchange of information regarding suspicious transactions related to moneylaundering/terrorist financing activity. This will require the CTRF to develop in-house analyticaland information technology capabilities. The CTRF should continue outreach to the formal and
http://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_Algeria.pdfhttp://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_Algeria.pdfhttp://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_Algeria.pdfhttp://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_Algeria.pdfhttp://www.menafatf.org/images/UploadFiles/Mutual_Evaluation_Report_of_the_Republic_of_Algeria.pdf

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