When FATF periodically updates these lists, generally on a quarterly cycle, why is this important for financial institutions to track? What BSA program actions should follow an update?  Below are key steps, although not all-inclusive, to implement upon a FATF update: 

• Update the geography section of your risk assessment 
• Countries added to FATF list should be included as high-risk jurisdictions   
• Countries removed can be changed as a high-risk jurisdiction, but only if the financial institution agrees with the lowered risk   
• Perform a customer search on the countries added as AML/CFT concerns; on a risk-based approach elevate the risk of these customers as appropriate 
• Know where your customers do business, search for funds transfers in and out of these jurisdictions 
• Update your policy, procedures, and processes to reflect the changes in the FATF list 
• Perform ongoing suspicious activity monitoring to include these higher-risk jurisdictions 
• Ensure your manual or automated scanning processes include the newest FATF information in a timely manner 

FATF is the most important watchdog to deter jurisdictions that may allow money laundering, terrorist financing, and other illicit and corrupt activity to go on in their countries. In fact, FATF and other global organizations let the charge for the United States to improve their beneficial ownership regulations. Regulators will expect that an institution's BSA program includes FATF recommendations and policies and procedures around jurisdictions of heightened risk. Following these will put your institution on the right track to a strong BSA program and a successful exam.