A Report by CYS Global Remit Legal & Compliance Office
As of February 21, 2025, the Financial Action Task Force (FATF) has updated its grey list, which includes countries under increased monitoring. Key points from the update are:
New Additions to Grey List: Laos and Nepal, due to gaps in their financial regulations. Both countries have promised to make improvements.
Removal from Grey List: The Philippines has been removed after successfully enhancing its anti-money laundering (AML) and counter-terrorist financing (CFT) measures.
The FATF grey list includes countries working with the organization to fix weaknesses in their financial systems. Key details about the grey list:
Being on this list does not mean the country will face penalties.
It encourages countries to boost financial governance and regulatory oversight.
These countries are closely monitored and reviewed regularly to ensure progress.
Financial institutions, businesses, and international banks may need to apply stricter checks when dealing with grey-listed countries to reduce the risk of financial crimes.
In addition to these updates, the FATF has confirmed that Iran, North Korea, and Myanmar will stay on its "blacklist." This list, officially called "High-Risk Jurisdictions subject to a Call for Action," includes countries with severe and ongoing issues in their AML/CFT frameworks. Important points about the blacklist:
These nations pose a significant threat to the global financial system.
The FATF advises financial institutions, regulatory bodies, and businesses worldwide to be very cautious when engaging with these blacklisted countries.
They may face strict restrictions, economic sanctions, and disruptions in international trade and banking due to their ongoing non-compliance with FATF standards.
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