The Financial Action Task Force (FATF) has added the Cayman Islands, Burkina Faso, Morocco, and Senegal to its ‘grey list’ of countries under supervision.
The move means the four countries are considered to have strategic deficiencies in their anti money laundering and counter terrorism financing regimes and are subject to increased monitoring.
The Cayman Islands has pledged to prosecute all types of prosecutions and ensure its sanctions are effective. Last week GRC World Forums reported that the country has for the first time started issuing fines for beneficial ownership registration violations.
Burkino Faso must meet a 10-point action plan which includes strengthening resources for AML supervision, law enforcement agencies and its Financial Intelligence Unit and making improvements to corporate transparency and suspicious transaction reporting.
Morocco has also agreed a plan that includes strengthening the capacity of its law enforcement agencies, improving risk-based supervision, ensuring that beneficial ownership information is accurate and , improving its suspicious transaction reporting
Senegal has a nine-point plan to meet that includes improving its understanding of money laundering risks, particularly for Designated Non-Financial Business and Professions (DNFBPs).
FATF also decided to keep Pakistan on its “grey list”. Marcus Pleyer, President of FATF, said the country had still to fully comply with three of 27 points in its agreed action plan. The points are understood to relate to taking steps against terror funding infrastructure. Responding to speculation Pakistan was in danger of getting relegated to the FATF ‘black list’ - joining North Korea and Iran- Pleyer said as Pakistan is improving this is not appropriate at this time.
FATF also agreed this week to publish a consultation document on updated guidance on mitigating risks from Virtual Assets Services Providers in March. This will include advice on how to apply FATF standards to stable coins.
It approved guidance on risk-based supervision and on strengthening measures to prevent the financing of weapons of mass destruction proliferation and guidance on improving counter terrorism financing.
List of countries on FATF’s ’grey list’
List of countries on FATF’s ‘black list’
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