Grey List
Definition
The FATF Jurisdictions Under Increased Monitoring list, identifying countries with strategic deficiencies that have committed to a remediation action plan. Inclusion increases financial due diligence costs and can reduce correspondent banking.
- Full name
- FATF Jurisdictions Under Increased Monitoring
- Maintained by
- Financial Action Task Force (FATF)
- Criteria
- Strategic AML/CFT deficiencies with a remediation plan
- Effect
- Higher due diligence costs, reduced correspondent banking
Common questions
How does the grey list differ from the FATF black list?+
Grey-listed jurisdictions have acknowledged deficiencies and committed to a specific, monitored action plan to fix them, while black-listed jurisdictions (High-Risk Jurisdictions subject to a Call for Action) face much more severe restrictions because they are judged uncooperative or unwilling to remediate.
Why does grey-listing matter to a forensic accountant investigating cross-border transactions?+
Transactions routed through a grey-listed jurisdiction attract heightened scrutiny under enhanced due diligence rules at correspondent banks, which can leave a more detailed compliance trail, but the same jurisdictions are also more attractive to launderers seeking weaker enforcement, so both effects shape where financial investigators focus.
Related terms
- 40 Recommendations
- FATF's core normative standards, covering customer due diligence, suspicious transaction reporting, beneficial ownership, targeted financial sanctions, and international cooperation. Last substantially revised...
- Designated Non-Financial Businesses and Professions (DNFBPs)
- Non-bank sectors required under FATF standards to apply AML controls, including real estate agents, lawyers, accountants, trust and company service providers, and...
- Egmont Group
- An international network of 166 financial intelligence units (FIUs) that share financial intelligence through a secure system. FIUs are the operational channel...
- FATF
- The Financial Action Task Force, an intergovernmental body founded in 1989 by the G7 that sets global standards for anti-money laundering and...
- Mutual Evaluation
- A peer review of a country's AML and CTF system by a team of experts from other FATF members, assessing both technical...