The FATF has updated the criteria for its “grey list“, which sets out jurisdictions under increased monitoring who are working with the FATF to address with agreed timeframes the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing.
The amendments aim to focus on those jurisdictions which pose greater risks to the international financial system, and provide greater support to least developed countries.
Under the new criteria, jurisdictions will be prioritised for active review if they meet the referral criteria and are:
- an FATF Member;
- a country on the World Bank High-Income Countries list (excluding those with a financial sector of two or fewer banks);
- a country that has financial sector assets above USD 10 billion (measured by broad money).
If the jurisdiction is a least developed country (as defined by the United Nations), they will not be prioritised for review unless the FATF agrees that they pose a significant money laundering, terrorist financing or proliferation financing risk. In such cases, least developed countries entering the review process could be granted a longer observation period.
The changes will apply for the next round of assessments.