FATF’s October 2024 Grey List update has introduced notable changes. Countries that made significant progress were removed, while new additions were based on recent findings of deficiencies.
| Country | Status | Reasons |
| Lebanon | Added to grey list | Inadequate measures in countering terrorist financing, especially in light of political and economic instability |
| Algeria | Added to grey list | Gaps in its AML/CFT framework, particularly in regulatory enforcement and transparency |
| Angola and Côte d’Ivoire | Added to grey list | Weaknesses in financial oversight and the implementation of FATF Recommendations |
| Senegal | Removed from grey list | Substantial improvement, addressing issues previously highlighted by FATF through regulatory and operational reforms |
Delve Into: Key Countries Affected in October 2024
Lebanon
Lebanon’s grey listing by FATF stems from its challenges in countering terrorist financing amid a complex political and financial environment. The country has faced growing concerns over unregulated financial activities and corruption, partly exacerbated by economic instability.
- Political and Economic Instability: Lebanon’s financial sector is under intense strain, with challenges in regulatory enforcement.
- AML/CFT Gaps: FATF cited issues such as inadequate monitoring of financial transactions and an inability to fully implement AML/CFT controls across financial institutions.
- Implications for Lebanon: Being on the grey list could lead to a decrease in foreign investment and create further pressure on Lebanon’s banking sector, already struggling with liquidity and credibility issues.
Algeria
Algeria’s addition to the grey list reflects ongoing issues in its regulatory framework, including a lack of transparency and inefficiency in enforcing AML standards.
- AML/CFT Deficiencies: FATF identified deficiencies in Algeria’s regulatory structure, especially concerning transparency and the oversight of certain financial institutions.
- Expected Reforms: Algeria is expected to address these issues by enhancing regulatory oversight and establishing better frameworks for reporting and enforcement.
Angola and Côte d’Ivoire
Angola and Côte d’Ivoire, both part of the October 2024 additions, face similar challenges in strengthening their AML/CFT systems, partly due to limited infrastructure and financial oversight.
- Financial Transparency Issues: Both countries were highlighted for insufficient financial transparency and regulatory oversight.
- Need for Capacity Building: FATF has urged these nations to increase their resources for AML/CFT implementation, suggesting international cooperation for technical support.
Senegal
Senegal’s removal from the grey list is a testament to its progress in meeting FATF recommendations, as it successfully implemented a number of reforms.
- Progress Made: Senegal demonstrated improved monitoring, enforcement, and overall compliance, particularly by addressing weaknesses in its financial reporting and regulatory sectors.
- Lessons for Other Countries: Senegal’s case underscores the effectiveness of targeted reforms, which can lead to successful removal from the grey list and improved economic outcomes.
FATF’s October 2024 Grey List updates underscore increasing focus on regions like the Middle East and Africa, which have struggled with implementing robust financial crime regulations due to various challenges, including limited resources and infrastructure constraints. To read more on FATF grey/black lists, click here.
