FATF Updates Grey and Black Lists
In October 2024, the Financial Action Task Force (FATF) updated its black and grey lists of countries with weak measures to combat money laundering and terrorist financing. These lists play a crucial role in raising awareness about risks and shaping international financial security policies.
Black List
The black list includes countries with serious strategic deficiencies in combating money laundering, terrorist financing, and proliferation financing. These countries pose the highest risks to the international financial system.
As of October 2024, the countries on the black list are:
- Democratic People’s Republic of Korea
- Iran
- Myanmar
FATF urges all countries to apply enhanced due diligence when dealing with these nations and calls for countermeasures to mitigate the risks associated with money laundering and terrorist financing. In the most severe cases, additional sanctions may be imposed.
Grey List
The grey list includes countries that are actively working with FATF to address deficiencies in their financial systems. These countries are committed to resolving identified issues within agreed timelines, but they have not yet met all necessary standards. FATF continues to monitor their progress.
As of October 25, 2024, the countries on the grey list are:
- Algeria
- Angola
- Bulgaria
- Burkina Faso
- Cameroon
- Côte d’Ivoire
- Croatia
- Democratic Republic of the Congo
- Haiti
- Kenya
- Lebanon
- Mali
- Monaco
- Mozambique
- Namibia
- Nigeria
- Philippines
- South Africa
- South Sudan
- Syria
- Tanzania
- Venezuela
- Vietnam
- Yemen
The recent update to the list added Lebanon, which is now under increased monitoring. On the other hand, Gibraltar and Senegal were removed from the list, having improved their anti-money laundering systems.
The Significance of the Lists for International Financial Security
The FATF lists play a key role in strengthening global financial security. They help ensure transparency and prevent the misuse of the international financial system for criminal activities.
Additionally, being on the black or grey list has a significant impact on a country. States on these lists face increased scrutiny from international financial organizations and other countries, which can make financial operations and attracting investments more difficult.
FATF continues to work with countries to improve their financial systems and reduce the risks associated with money laundering and terrorist financing.