CONCEPTS

MONEY LAUNDERING COUNTRIES (US DEPARTMENT OF STATE)

 

On an annual basis the US State Department publishes a country by country report on global money laundering. Historically, countries were categorised as Primary Concern, Concern or Monitored, depending upon the perceived state of money laundering. However, since 2016, the report has concentrated on major money laundering countries. The statute defines a “major money laundering country” as one “whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking” and is derived from the US State Department International Narcotics Control Strategy Report (Drugs and Chemical Control) and based on indicia of significant drug related money laundering activities including money laundering activity trends, the activities of non-financial businesses and professions or other value transfer systems. 

It should be noted that inclusion within this list is not an indication that a jurisdiction is not making strong efforts to combat money laundering or that it has not fully met relevant international standards.  The INCSR is not a “black list” of jurisdictions, nor are there sanctions associated with it.