New FATF president announces grey list changes for low income countries

The Financial Action Task Force (FATF) has announced significant changes to how countries are added to its grey list, with low-income nations set to benefit from the new measures. Under the changes, countries with an income below $10 billion will generally avoid being grey-listed, except in cases where they are deemed high-risk by consensus.

Elisa de Anda Madrazo, the newly-appointed FATF president, revealed that the move aims to reduce the burden on poorer nations, as grey-listing often hampers international investment and borrowing. She estimated that the number of countries on the grey list could drop by 47%.

Speaking at the International Anti-Financial Crime Summit 2024, Elisa de Anda Madrazo explained that these reforms are expected to be formalised within weeks. While standards for FATF member states, including the UK, U.S., and most EU countries, will be tightened, low-income countries will be given more time before facing scrutiny. Nations in “high debt distress” or still classified as poorer will also receive extended grace periods before being grey-listed.

These changes aim to avoid penalising countries with limited financial integration, while holding larger, wealthier nations to higher standards.

Source: AML Intelligence