Jurisdictions Under Increased Monitoring by the FATF: A Comprehensive Overview

On February 23, 2024, the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, updated its list of jurisdictions under increased monitoring, commonly referred to as the “grey list”. This list includes countries actively working with the FATF to address strategic deficiencies in their Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regimes.

Purpose and Impact of Increased Monitoring

The FATF’s increased monitoring process is not punitive but rather a cooperative effort aimed at improving global financial integrity. Jurisdictions on the grey list have committed to resolving identified deficiencies within agreed timeframes and are subject to heightened scrutiny. This designation does not entail enhanced due diligence measures but encourages a risk-based approach, taking into account the specific circumstances of each jurisdiction.

Progress and Commitments of Jurisdictions

Several countries have shown progress since the last review in October 2023, including Barbados, Bulgaria, Burkina Faso, Croatia, the Democratic Republic of Congo, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Tanzania, Türkiye, UAE, and Uganda. These countries have taken various steps to strengthen their AML/CFT frameworks, such as improving legal structures, enhancing enforcement mechanisms, and increasing international cooperation.

Particularly noteworthy is the progress of countries like Jamaica and Türkiye, which have substantially completed their action plans and are now pending on-site assessments to verify the sustainability and implementation of their AML/CFT reforms.

Conversely, Cameroon, Haiti, Syria, Vietnam, and Yemen opted to defer their reporting, maintaining previous assessments which may not reflect current conditions.

Newly Identified Jurisdictions and Removal from the List

The FATF also introduced Kenya and Namibia to the grey list, recognizing their commitment to enhancing their AML/CFT regimes. On the other hand, Barbados, Gibraltar, and Uganda have been removed from the list, having significantly improved their AML/CFT systems to meet FATF’s strategic deficiencies criteria.

Continuous Improvement and Global Impact

The FATF emphasizes continuous progress and adherence to agreed timelines. Jurisdictions under increased monitoring are urged to swiftly implement their action plans to address identified deficiencies. This ongoing monitoring and reporting process underscores the FATF’s commitment to strengthening global financial systems and combating money laundering, terrorist financing, and proliferation financing.

The FATF’s role in maintaining global financial integrity is vital, and the list of jurisdictions under increased monitoring serves as a crucial tool for assessing and improving AML/CFT standards worldwide. The collaborative nature of the FATF’s engagement with these jurisdictions highlights the importance of international cooperation in safeguarding the integrity of the global financial system.