Since the adoption of its MER in June 2021, South Africa has made significant progress on many of the MERs recommended actions to improve its system including by developing national AML/CFT policies to address higher risks and newly amending the legal framework for TF and TFS, among others. Blacklist. A number of jurisdictions have not yet been reviewed by the FATF or their FSRBs, but will be in due course. The FATF expresses concern that Uganda failed to complete its action plan, which fully expired in May 2022. Grey listing refers to a country being placed on a list of countries under increased monitoring by the Financial Action Task Force (FATF), the global money laundering and terrorist. So far in 2023, 23 other countries remain on the FATF's gray list, including two new additionsNigeria and South Africa. The following countries had their progress reviewed by the FATF since February 2023: Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of Congo, Gibraltar, Jamaica, Jordan, Mali, Mozambique, Panama, Philippines, Senegal, South Africa, South Sudan, Trkiye, UAE, and Uganda. Morocco strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2021 related to improving its international cooperation mechanisms, strengthening AML/CFT supervision, strengthening transparency of legal persons by ensuring timely access to accurate beneficial ownership information, strengthening the capacities of the FIU, enhancing capacities to conduct ML investigation and confiscate the proceeds of crime and improving effectiveness of the targeted financial sanctions regime. Paris, 24 February 2023 -Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. FATF Black Lists and Grey Lists - Ripjar Countries on the "grey list" are the "jurisdictions under increased monitoring." The move makes Croatia the only EU member on the list, and the stated reason is the country's deficiencies in preventing money laundering . PDF FATF grey listing - Deloitte US If a country is in FATF blacklist, international banks may refuse payment transactions from these countries. The FATF continues to monitor Ugandas oversight of the NPO sector to encourage the application of the risk-based approach to supervision of NPOs in line with the FATF Standards and mitigate unintended consequences. Since February 2021, when Burkina Faso made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Burkina Faso has taken steps towards improving its AML/CFT regime, including by increasing ML investigations and the use of international cooperation in line with its risk profile. The second list, known as the "FATF grey list" or "FATF list of jurisdictions under . FATF - Full Form, Functions, Grey List, FATF UPSC. In June 2014, the FATF determined that Yemen had substantially addressed its action plan at a technical level, including by: (1)adequately criminalising money laundering and terrorist financing; (2) establishing procedures to identify and freeze terrorist assets; (3) improving its customer due diligence and suspicious transaction reporting requirements; (4) issuing guidance; (5) developing the monitoring and supervisory capacity of the financial sector supervisory authorities and the financial intelligence unit; and (6) establishing a fully operational and effectively functioning financial intelligence unit. The FATF continues to monitor Ugandas oversight of the NPO sector to encourage the application of the risk-based approach to supervision of NPOs in line with the FATF Standards and mitigate unintended consequences. The Philippines should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) demonstrating that effective risk-based supervision of DNFBPs is occurring; (2) demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; (3) enhancing and streamlining LEA access to BO information and taking steps to ensure that BO information is accurate and up-to-date; (4) demonstrating an increase in ML investigations and prosecutions in line with risk; and (5) demonstrating an increase in the identification, investigation and prosecution of TF cases. FATF full form is Financial Action Task Force and it was established in 1989 at G7 Paris Summit. The FATF provides some flexibility to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. The FATF black list (sometimes referred to as the OECD black list) is a list of countries that the intragovernmental organization considers non-cooperative in the global effort to combat money laundering and the financing of terrorism. The FATF recognises the political commitment expressed at a high level and the efforts demonstrated by Haiti to advance its commitments in the midst of the challenging social, economic and security situation within the country. Since June 2021, when the Philippines made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime, the Philippines has taken steps to promote understanding of TFS obligations amongst FIs and DNFBPs, to increase the use of financial intelligence and investigative skills of LEAs tasked with ML investigations and to prioritise asset tracing and confiscation at the point of conviction in criminal cases. The FATF strongly urges Jamaica to swiftly demonstrate significant progress in completing its action plan by June 2023 or the FATF will consider next steps, which could include calling on its members and urging all jurisdictions to apply enhanced due diligence to business relations and transactions with Jamaica. Objective: Initially, its objective was to examine and develop measures to combat money laundering. Country Albania | Barbados | Botswana | Burkina Faso | Cambodia | Cayman Islands | Ghana | Jamaica | Mauritius | Morocco | Myanmar | Nicaragua | Pakistan | Panama | Senegal | Syria | Uganda | Yemen | Zimbabwe Topic High-risk and other monitored jurisdictions Jurisdictions under Increased Monitoring - February 2021 The Financial Action Task Force (FATF) has also added South Africa and Nigeria to its "grey list," a move that can be devastating to a . While the FATF determined that Yemen has completed its agreed action plan, due to the security situation, the FATF has been unable to conduct an on-site visit to confirm whether the process of implementing the required reforms and actions has begun and is being sustained. PARIS, June 23 (Reuters) - The FATF international financial crime watchdog on Friday said it had added EU member state Croatia to its so-called "grey list" of countries under special. 25 Jun 2023 17:05:01 Since February 2020, when Jamaica made a high-level political commitment to work with the FATF and CFATF to strengthen the effectiveness of its AML/CFT regime, Jamaica has taken steps towards improving its AML/CFT regime, including by ensuring that its definition of beneficial ownership is in line with the FATF Standards. The FATF Grey List is also updated frequently, and de-listings and new additions are made based on the performance of the . This list is often externally referred to as the grey list. What is the FATF grey list? FATF puts Croatia, Cameroon, Vietnam on 'gray list' Haiti should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1)completing its ML/TF risk assessment process and disseminating the findings; (2)facilitating information sharing with relevant foreign counterparts; (3)addressing the technical deficiencies in its legal and regulatory framework that impede the implementation of AML/CFT preventive measures and implementing risk-based AML/CFT supervision for all financial institutions and DNFBPs deemed to constitute a higher ML/TF risk; (4)ensuring basic and beneficial ownership information are maintained and accessible in a timely manner; (5)ensuring a better use of financial intelligence and other relevant information by competent authorities for combatting ML and TF; (6)addressing the technical deficiencies in its ML offence and demonstrating authorities are identifying, investigating and prosecuting ML cases in a manner consistent with Haitis risk profile; (7)demonstrating an increase of identification, tracing and recovery of proceeds of crimes; (8)addressing the technical deficiencies in its TF offence and targeted financial sanctions regime; and (9)conducting appropriate risk-based monitoring of NPOs vulnerable to TF abuse without disrupting or discouraging legitimate NPO activities. In October 2021, Mali made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime. Trkiye should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) undertaking more complex ML investigations and prosecutions; and (2) conducting more financial investigations in terrorism cases, prioritising TF investigations and prosecutions related to UN-designated groups. The FATF will continue to monitor the situation and will conduct an on-site visit at the earliest possible date. Text size. At its June 2023 plenary, the FATF made the initial determination that Panama has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future. Tanzania will work to implement its FATF action plan by: (1) improving risk-based supervision of FIs and DNFBPs, including by conducting inspections on a risk-sensitive basis and applying effective, proportionate, and dissuasive sanctions for non-compliance; (2) demonstrating authorities capability to effectively conduct a range of investigations and prosecutions of ML in line with the countrys risk profile; (3) demonstrating that LEAs are taking measures to identify, trace, seize, and confiscate proceeds and instrumentalities of crime; (4) conducting a comprehensive TF Risk Assessment and begin implementing a comprehensive national CFT strategy as well as demonstrating capability to conduct TF investigations and pursue prosecutions in line with the countrys risk profile; (5) increasing awareness of the private sector and competent authorities on TF and PF-related TFS; and (6) carrying out the TF risk assessment for NPOs in line with the FATF Standards and using it as a basis to develop an outreach plan. This list has proven to be an effective tool and of the 98 countries that have been identified as needing to reform, 72 have since made the required adjustments. FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris. In February 2023, Nigeria made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime. Since June 2021, when South Sudan made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, South Sudan has taken steps towards improving its AML/CFT regime, including by preventing criminals from controlling or owning financial institutions. Since February 2022, when the United Arab Emirates (UAE) made a high-level political commitment to work with the FATF and MENAFATF to strengthen the effectiveness of its AML/CFT regime, the UAE demonstrated significant progress, including by demonstrating a sustained increase in outbound MLA requests to help facilitate the investigation of TF, ML, and high-risk predicates, showing greater use of financial intelligence to pursue high-risk ML threats, and combating UN sanctions evasion, including by demonstrating a better understanding among the private sector. Since February 2010, when Syria made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, Syria has made progress to improve its AML/CFT regime. The FATF grey list is the agency's official list of countries and jurisdictions that are identified as having strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. The FATF again expresses concern that Jamaica failed to complete its action plan, which fully expired in January 2022. The anxiety among Pakistan officials was palpable ahead of another review by the Financial Action Task Force (FATF) as they hoped that the watchdog would remove the country from its 'grey list'. The FATF welcomes their commitment and will closely monitor their progress. Albania should ensure that any amnesty provisions included in the VTC law do not present an opportunity for individuals or legal persons to legalise or repatriate assets of unlawful origin and that any criminal amnesty only relates to the previous incorrect or non-reporting of taxable income. Since the adoption of its MER in December 2021, Croatia has made progress on its MERs recommended actions to improve its system by licensing and monitoring the registration of VASPs, enhancing and implementing more effective sanctions in supervisory activities and enhancing implementation of preventive measures for high-risk sectors. Burkina Faso should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) updating its understanding of ML/TF risks, including through the revision of the national risk assessment in line with the sectoral priorities identified in its national strategy; (2) strengthening of resource capacities of all AML/CFT supervisory authorities and implementing risk based supervision of FIs and DNFBPs; (3) maintaining comprehensive and updated basic and beneficial ownership information of legal persons and strengthening the system of sanctions for violations of transparency obligations; (4) increasing the diversity of suspicious transactions reporting; (5) establishing procedures for effective implementation of declaration of cross-border declaration of currencies and bearer negotiable instruments; (6) enhancing cooperation between LEAs and prosecutorial authorities combatting TF and conducting TF investigations and prosecutions in line with its risk profile; and (7) implementing an effective targeted financial sanctions regime related to TF and PF as well as risk-based monitoring and supervision of NPOs. AP Will it, won't it? Financial crime watchdog adds Croatia to "grey list" of countries - MSN Wanger LP . As a result, the FATF made the determination to conduct an on-site assessment to verify that the implementation of Albanias AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future. Therefore, the FATF encourages its members and all jurisdictions to take into account the information presented below in their risk analysis. Tanzania will work to implement its FATF action plan by: (1) improving risk-based supervision of FIs and DNFBPs, including by conducting inspections on a risk-sensitive basis and applying effective, proportionate, and dissuasive sanctions for non-compliance; (2) demonstrating authorities capability to effectively conduct a range of investigations and prosecutions of ML in line with the countrys risk profile; (3) demonstrating that LEAs are taking measures to identify, trace, seize, and confiscate proceeds and instrumentalities of crime; (4) conducting a comprehensive TF Risk Assessment and begin implementing a comprehensive national CFT strategy as well as demonstrating capability to conduct TF investigations and pursue prosecutions in line with the countrys risk profile; (5) increasing awareness of the private sector and competent authorities on TF and PF-related TFS; and (6) carrying out the TF risk assessment for NPOs in line with the FATF Standards and using it as a basis to develop an outreach plan. Restricted access for FATF delegates only, Terms & conditions | Privacy Policy |Sitemap, Asia/Pacific Group on Money Laundering (APG), Caribbean Financial Action Task Force (CFATF), Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), Financial Action Task Force of Latin America (GAFILAT), Inter Governmental Action Group against Money Laundering in West Africa (GIABA), Middle East and North Africa Financial Action Task Force (MENAFATF), Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL), High-Risk Jurisdictions subject to a Call for Action - June 2023, Jurisdictions under Increased Monitoring - 23 June 2023, FATF Guidance on Beneficial Ownership Recommendation 24 - Public Consultation, Revision of R25 and its Interpretive Note Public Consultation, Risk-Based Approach Guidance for the Real Estate Sector - summary of the FATF public consultation, FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems, Jurisdictions under Increased Monitoring - 24 February 2023. Since October 2022, when the DRC made a high-level political commitment to work with the FATF and GABAC to strengthen the effectiveness of its AML/CFT regime, the DRC has taken steps towards improving its AML/CFT regime, including by strengthening its legal framework on the criminalisation of money laundering. Financial Action Task Force (FATF) - The FATF strongly urges Uganda to swiftly demonstrate significant progress in completing its action plan by June 2023 or the FATF will consider next steps if there is insufficient progress. The result of their mutual evaluation was released in October 2021. The following countries had their progress reviewed by the FATF since October 2022: Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Gibraltar, Haiti, Jamaica, Jordan, Mali, Morocco, Myanmar, Panama, Philippines, Senegal, South Sudan, Trkiye, UAE, and Uganda. The FATF encourages Trkiye to continue to implement its action plan to address the above-mentioned strategic deficiencies as soon as possible. Countries at Risk of Joining the Crypto Grey List in 2023 Restricted access for FATF delegates only, Terms & conditions | Privacy Policy |Sitemap, Asia/Pacific Group on Money Laundering (APG), Caribbean Financial Action Task Force (CFATF), Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), Financial Action Task Force of Latin America (GAFILAT), Inter Governmental Action Group against Money Laundering in West Africa (GIABA), Middle East and North Africa Financial Action Task Force (MENAFATF), Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL), High-Risk Jurisdictions subject to a Call for Action - June 2023, Jurisdictions under Increased Monitoring - 23 June 2023, FATF Guidance on Beneficial Ownership Recommendation 24 - Public Consultation, Revision of R25 and its Interpretive Note Public Consultation, Risk-Based Approach Guidance for the Real Estate Sector - summary of the FATF public consultation, FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems, High-risk and other monitored jurisdictions. WORLD BANK There are 9 FATF style regional bodies Asia/Pacific Group on Money Laundering (APG) based in Sydney, Australia; Caribbean Financial Action Task Force (CFATF) based in Port of Spain,. The FATF identifies additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Trkiye should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) increasing on-site inspections by supervisors across all sectors, commensurate with risk; (2) enhancing the use of financial intelligence to support ML investigations; (3) undertaking more complex ML investigations and prosecutions; (4) using statistics on confiscation and terrorist financing to update risk assessments and inform policy; (5) conducting more financial investigations in terrorism cases, prioritising TF investigations and prosecutions related to UN-designated groups, and ensuring TF investigations are extended to identify financing and support networks; (6) concerning targeted financial sanctions, pursuing outgoing requests to third-countries related to UN-designated groups, in line with Trkiyes risk profile; and (7) fully implementing a risk-based approach for the supervision of non-profit organisations to prevent their abuse for terrorist financing, including by taking steps to ensure that audits conducted are risk-based, that supervision does not disrupt or discourage legitimate NPO activity such as fundraising, and that sanctions applied are proportionate to any violations.