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The Treasury Department welcomes today's announcement by the Financial Action Task Force (FATF) of significant progress in its efforts to combat international money laundering. Dramatic results have been achieved through its initiative on non-cooperative countries and territories. The FATF removed the Bahamas, the Cayman Islands, Liechtenstein and Panama from the list it published one year ago, recognizing the comprehensive reforms they have put in place. We applaud the legal reforms made by these countries, said U.S. treasury Secretary Paul O'Neill. These improvements are a testament to the effectiveness of international cooperation in combating money laundering, and I'm optimistic that the FATF process will generate further progress.
Eleven countries named last year will remain on the non-cooperation list: the Cook Islands, Dominica, Israel, Lebanon, Marshall Islands, Nauru, Niue, the Philippines, Russia, St. Kitts & Nevis, and St. Vincent & the Grenadines. In addition, the FATF has placed six more countries on the list: Burma, Egypt, Guatemala, Hungary, Indonesia, and Nigeria. This process provides an opportunity for transition economies, such as Hungary, to focus their reform efforts to ensure their full integration into the global financial system. The U.S. Treasury Department urges all 17 countries to move quickly to enact and implement needed reforms. The Treasury Department intends to update its advice to U.S. financial institutions as necessary to reflect the FATF findings.
The FATF has also recommended the imposition of additional countermeasures against Russia, Nauru, and the Philippines due to their lack of progress over the last year in addressing the FATF's concerns. The countermeasures will go into effect on September 30, 2001, unless their governments enact significant legislation before then to address these problems. The Treasury Department supports counter measures against countries refusing to implement constructive legal reforms to address ongoing money laundering concerns. The Treasury Department, in conjunction with the Department of State and the Department of Justice, remains firmly committed to this global battle and we praise the steps the FATF has taken today.
FATF INFORMATION: The FATF is an independent international body. The twenty-nine member countries and governments of the FATF are: Argentina; Australia; Austria; Belgium; Brazil; Canada; Denmark; Finland; France; Germany; Greece; Hong Kong, China; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; The Kingdom of the Netherlands; New Zealand; Norway; Portugal; Singapore; Spain; Sweden; Switzerland; Turkey; United Kingdom; and the United States. Two international organizations are also members of the FATF: the European Commission and the Gulf Co-operation Council.