A Guide to the FATF Grey List

The Financial Action Task Force (FATF)’s list of jurisdictions under increased monitoring, or ‘grey list,’ is among the best-known indices of higher-risk countries in the compliance industry. But how should firms respond to a grey listing in practice?

The FATF grey list supports governments committed to improving their financial crime risk management policies and enforcement capabilities. However, it contains many countries for many reasons – some feature on the list for extended periods, others reform and are removed within a few years.

As a result, knowing how to respond when a country a firm operates in is placed on the list can be difficult. An overreaction could slip into de-risking, leading to regulatory action. An underreaction also leaves a firm open to regulatory consequences – particularly as enforcement actions often rise once a country has been placed on the grey list.

This guide walks compliance teams through the FATF grey list and includes a section of the ComplyAdvantage risk matrix, which sets the grey list in the context of other risk indicators firms should consider. Download your copy to read about:

The importance of the grey list.
Common focus areas for the FATF when assessing countries.
A high-level action plan firms in grey-listed countries can use to shape their thinking.

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Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.