Changes to the FATF and UK list of high risk third countries

On 28 June, the Financial Action Task Force (FATF) made the following changes to its list of jurisdictions under increased monitoring due to weak measures to combat money laundering and terrorist financing (i.e. the “grey list”):

• Removed: Jamaica; Turkey

• Added: Monaco; Venezuela

The list of jurisdictions subject to a Call for Action (i.e. the “black list”) remained unchanged (and includes North Korea, Iran and Myanmar). The full current lists are here.

As we reported earlier in the year, recent amendments to the UK Money Laundering Regulations mean that High Risk Third Countries for the purposes of the Regulations are now defined as a country named on either of the FATF lists. As such, it is imperative that firms ensure their financial crime frameworks and customer risk assessments take account of the FATF lists and treat jurisdictions included on either FATF list as high risk.

These lists are updated three times a year, on the final day of each FATF Plenary meeting, held every February, June and October.

Note that this should only be the first step in a Firm's jurisdictional risk assessment; the Firm should also form its own assessment of other jurisdictions and whether these should be treated as high risk based on a range of factors.

Please do get in touch if you have any questions.