In addition to the application of Recommendation 21, the FATF has published further counter-measures which it says "should be gradual, proportionate and flexible regarding their means and taken in concerted action towards a common objective." The Task Force believes that enhanced surveillance and reporting of financial transactions and other relevant actions involving concerned jurisdictions are required, including the possibility of:
Stringent requirements for identifying clients and enhancement of advisories, including jurisdiction-specific financial advisories, to financial institutions for identification of the beneficial owners before business relationships are established with individuals or companies from these countries;
Enhanced relevant reporting mechanisms or systematic reporting of financial transactions on the basis that financial transactions with such countries are more likely to be suspicious;
In considering requests for approving the establishment in FATF member countries of subsidiaries or branches or representative offices of banks, taking into account the fact that the relevant bank is from an NCCT;
Warning non-financial sector businesses that transactions with entities within the NCCTs might run the risk of money laundering.
The FATF has called upon its members to apply these counter-measures to Myanmar beyond those currently in place. This action reportedly is based on the decision taken by the Plenary in Stockholm earlier in the month. Myanmar was first identified as a non-cooperative country or territory (NCCT) in the fight against money laundering in June 2001 and, according to an FATF release, since that time has still not addressed major deficiencies in its anti-money laundering regime. In particular, says the FATF, Myanmar has failed to establish a framework to engage in effective international cooperation in the fight against money laundering, and its anti-money laundering law continues to lack the implementing regulations necessary to make it enforceable.
According to the FATF's Recommendation 21, financial institutions should give special attention to business relationships and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply the FATF Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help competent authorities. Where such a country continues not to apply or insufficiently applies the FATF Recommendations, countries should be able to apply appropriate counter measures.