New requirements for business – which countries have been added to the “grey” list and what will change for companies?
At the last FATF meeting in Paris on October 25, significant changes were approved in relation to countries under enhanced monitoring, which has a significant impact on companies with financial or business interests in these jurisdictions. FATF (Financial Action Task Force) oversees international financial risks aimed at combating money laundering and terrorist financing. The new “gray” monitoring list includes additional countries, as well as a revised national risk assessment strategy.
Countries under enhanced monitoring: what’s new?
Since October 2024, Algeria, Angola, Cote d’Ivoire and Lebanon have been added to the FATF’s “grey” monitoring list. These countries, together with other jurisdictions, are obliged to strengthen their internal processes of financial monitoring and counteraction to illegal operations. Since June 2024, this list has already included such countries as Bulgaria, Cameroon, Croatia, Mozambique and others, which may trigger additional checks for companies associated with these jurisdictions. Also, Senegal was excluded from the list on October 25, which is positive news for companies with business interests in this country.
Special attention: Iran, the DPRK and Myanmar remain in the “high-risk” list, but the FATF did not reach a consensus regarding the inclusion of Russia. The Ukrainian authorities supported initiatives to suspend Russia’s membership in the FATF, emphasizing the threats arising from the country’s aggressive financial and economic policy.
What does this mean for companies?
Risk of increased monitoring: Companies with partners in new “grey” countries may face more thorough checks and transparency requirements. The risk of additional AML (Anti-Money Laundering) procedures during financial operations increases, which may cause delays or restrictions on cooperation.
Necessity of risk assessment: The meeting also approved a new guide on national risk assessment to help companies create more adapted risk management systems, especially in areas where financial transactions include countries from the FATF list.
Strict requirements for confidentiality and data protection: FATF has also started to create new data protection mechanisms when exchanging information, which may affect the processing of data in cross-border transactions.
Future prospects: what will you pay attention to?
The new FATF gray list requirements create additional restrictions and increase the risk of compliance verifications for international business. This especially applies to companies working in the field of financial services, international trade or having complex structures involving offshore partners.
Recommendations for business:
View operations with partners in countries from the FATF list.
Strengthen internal control and implement updated AML procedures.
Pay attention to increasing the transparency and reliability of financial transactions.
It is also important to seek advice from lawyers and compliance specialists who will help adapt business processes to the new FATF regulatory requirements.
Sources for confirming information:
FATF official site
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