The Financial Action Task Force (FATF) maintains a list of countries that it believes are not doing enough to combat money laundering and terrorist financing. This list is known as the “grey list,” and it includes countries that have deficiencies in their anti-money laundering and counter-terrorist financing regimes.
The purpose of the grey list is to put pressure on countries to improve their regimes and address the deficiencies identified by the FATF. Being on the grey list can have negative consequences for a country, as it may face increased scrutiny from financial institutions and other countries. This can make it more difficult for the country to access the global financial system and can have negative effects on its economy.
To be removed from the grey list, a country must take steps to address the deficiencies identified by the FATF and demonstrate that it has made significant progress in improving its anti-money laundering and counter-terrorist financing regime. The FATF conducts periodic reviews of grey-listed countries to assess their progress and determine whether they should be removed from the list.
Overall, the grey list serves as an important tool for the FATF to encourage countries to improve their regimes and combat money laundering and terrorist financing.
This page was last updated on January 2, 2023.