FATF – Jurisdictions under Increased Monitoring – 27 October 2023
Jurisdictions under increased monitoring by the FATF are actively working with the organization 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 signifies that the country has committed to swiftly resolving the identified strategic deficiencies within agreed timeframes and is subject to intensified monitoring. This list is often referred to as the „grey list.“
The FATF and FATF-style regional bodies (FSRBs) continue to collaborate with these jurisdictions, which report on the progress made in addressing their strategic deficiencies. The FATF urges these jurisdictions to expediently complete their action plans within the agreed timeframes. It acknowledges their commitment and plans to closely monitor their progress. Importantly, the FATF does not advocate for the application of enhanced due diligence measures to these jurisdictions. The FATF Standards call for a risk-based approach rather than de-risking or cutting off entire classes of customers.
Additionally, the FATF identifies new jurisdictions with strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing on an ongoing basis. Some jurisdictions have not yet been reviewed by the FATF or their FSRBs but will be in the future.
The FATF allows jurisdictions not facing immediate deadlines some flexibility to report progress on a voluntary basis. As of October 2023, the following countries had their progress reviewed by the FATF: Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of Congo, Gibraltar, Haiti, Jamaica, Jordan, Mali, Mozambique, Nigeria, Panama, Philippines, Senegal, South Africa, South Sudan, Tanzania, Türkiye, UAE, and Uganda. Updated statements for these countries are provided. However, Cameroon, Croatia, Syria, and Vietnam chose to defer reporting, so the statements previously issued for these jurisdictions may not reflect the most recent status of their AML/CFT regimes. Following review, the FATF now also identifies Bulgaria.
The FATF Recommendations document details measures for obtaining information on the source of funds or wealth of the customer, reasons for transactions, approval of senior management for business relationships, enhanced monitoring of business relationships, and requirements for the first payment to be through a customer’s bank account subject to similar CDD standards. Simplified CDD measures are allowed where the risks of money laundering or terrorist financing are lower, taking into account the nature of the lower risk