List of African countries being monitored for terrorist financing and more

Several African countries are currently combating the issues of money laundering, terrorist financing, and proliferation financing, as identified by the Financial Action Task Force (FATF). While some of these countries are classified as high risk, others are not as severe despite being placed under monitoring. These countries being monitored for the issues mentioned above are referred to as Grey List countries.

The Financial Action Task Force (FATF) is an intergovernmental body that was established to address challenges to the integrity of the global financial system, including money laundering and the funding of terrorism.

A nation that has committed to resolving strategic shortcomings in its anti-money laundering (AML) and counter-terrorism financing (CTF) regimes is signaled by being put on the FATF grey list.

However, the economics, governance, and foreign relations of a country are all significantly impacted by its placement on the grey list.

Nonetheless, the FATF’s grey list serves as a stimulus for institutional and governance change. Countries on the grey list must take thorough actions to fix recognized flaws in their AML and CTF systems. This frequently entails legislative reforms, strengthened regulatory frameworks, and improved enforcement procedures.

“When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list,” the FATF states.

The FATF has 21 countries under its Grey List, 12 of which are African. Below are the 12 countries under the FATF’s Grey List.

The FATF regularly evaluates its criteria for placing a nation on its Grey or Black List, and if a country has resolved those issues, it is removed from the list. For example, Jamaica recently achieved great progress in reforming its AML/CFT system, and as a result, it has been listed as a country no longer subject to increased monitoring.

Unfortunately, since the last time the FATF released its Grey List, no African country placed on the list has been removed.

All 12 African countries placed under the FATF’s Grey List as of February 2024, remain on the list updated on June 28th, 2024. The Grey and Black Lists are issued 3 times a year.

List of African countries being monitored for terrorist financing and more

source: Pulse