OMM Newsroom
The Financial Action Task Force (FATF), which monitors risks related to money laundering and terrorist financing, has removed four countries from its “grey list.” Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo and Monaco have been released from enhanced monitoring after taking steps to address deficiencies in combating financial crime.
FATF said the four countries had demonstrated “positive progress” in addressing strategic shortcomings identified in previous assessments, AnewZ reports.
Being placed on the “grey list” does not mean sanctions, but transactions involving listed countries face greater scrutiny from banks, investors and financial institutions. This can raise compliance costs and reduce investment and cross-border financial activity. Removal from the list is seen as a signal to international markets that a country’s financial regulatory system has improved.
In the Democratic Republic of the Congo, the decision was welcomed as a step that could reduce costs for businesses and financial institutions. Finance Minister Dudu Russel Fvamba Likunde Li-Botayi said the move should facilitate international transactions and support banking relationships.
“Removal from the list is expected to reduce the cost and complexity of cross-border transactions for Congolese banks, businesses and citizens, and support correspondent banking relationships,” the minister said.
In Monaco, the decision was also described as recognition of broad reforms. Monaco’s Minister of State Christophe Mirmand said the country’s removal from the list was the result of sustained institutional efforts.
“This decision recognizes the concrete, serious and coordinated work carried out by all the state’s institutions and departments over more than two years.”
FATF has warned Vietnam, saying progress in addressing identified deficiencies remains insufficient. It said it could consider further steps if reforms are not accelerated by the next plenary meeting.
“If Vietnam does not make significant progress in addressing its strategic deficiencies by the next plenary meeting, FATF will consider next steps.”
The statement increases pressure on Vietnam’s authorities to strengthen financial oversight and address concerns raised in previous assessments.
FATF has kept Iran, Myanmar and North Korea on its “black list,” which is reserved for countries with serious strategic deficiencies in preventing money laundering, terrorist financing and the financing of proliferation. The organization has urged Myanmar to take action against large-scale scam and fraud networks operating in the country.
Earlier reports said Japan had lobbied for Myanmar’s removal from the “black list” to improve business ties. FATF, however, has not changed the country’s status. Myanmar was added to the list in 2022, after a military coup ushered in prolonged political instability and armed conflict.
North Korea also continues to face FATF’s most severe measures. Allegations that the country uses cyber operations to generate revenue are a major concern for international regulators and governments.
Some analysts have linked North Korean hackers to the theft of about $6.3 billion from the Binance cryptocurrency exchange. Some observers believe the incident could be one of the largest financial thefts on record.
U.S. and South Korean officials, along with cybersecurity experts, have repeatedly accused cyber groups linked to North Korea of engaging in espionage and financial theft to generate funds for the country. Pyongyang has consistently denied the allegations.
Placement on the “black list” carries more severe financial consequences than inclusion on the “grey list.” Listed countries may face frozen investment opportunities, significantly stricter compliance requirements and restricted access to global banking networks. International financial institutions are advised to subject transactions involving these countries to the highest level of scrutiny.
FATF’s latest decisions show that the organization continues to work to strengthen global financial transparency and put pressure on countries it believes have failed to adequately address serious financial crime risks.
