Kenya and Namibia added to FATF Grey List

Following today’s conclusion of its February 2024 plenary session, the FATF has updated the list of jurisdictions under increased monitoring. The changes to the list include the addition of Kenya and Namibia to the grey list and the removal of four countries – namely Barbados, Gibraltar, Uganda and the United Arab Emirates (UAE).

Background Information

In our article on the Financial Action Task Force (FATF), we explained the important role that this inter-governmental organisation has in the world-wide fight against money laundering and terrorist financing. We highlighted the importance of tracking updates published by the FATF, and how changes to the list of high-risk countries maintained by the FATF may mandate changes to the type of due diligence you apply to your clients.

The FATF maintains two lists of high-risk countries – a “blacklist” and a “grey list”. The blacklist, officially known as “High-Risk Jurisdictions Subject to a Call for Action” includes countries that are considered to be non-cooperative in the global fight against money laundering and terrorist financing. The “grey list”, officially known as “Jurisdictions under Increased Monitoring” includes countries that are identified by the FATF to have strategic deficiencies in their AML/CFT regimes but are making significant efforts to improve and are working with the FATF to resolve these issues within the agreed timeframes.

These lists are usually updated every four months at the end of the FATF’s plenary session, a meeting open to delegations from all 200+ FATF member countries.

Latest FATF Lists

Added to the Grey List: Kenya and Namibia

The FATF has added two African countries to the list of jurisdictions under increased monitoring – Kenya and Namibia. The FATF noted that since the last MER in September 2022, Kenya has made amendments to its AML/CFT legislation and has improved its ability to cooperate internationally. Kenya is now working on a comprehensive action plan that includes risk assessments, enhancing supervision, and improving legal and regulatory frameworks.

On the other hand, Namibia has recently been working on ensuring key stakeholders within the country have a common understanding of the risks associated with money laundering, terrorism financing and proliferation financing. The country is now working on improving supervision, preventive measures, and operational capabilities.

Countries taken off the Grey List

Four countries have been taken off the FATF grey list. This includes Barbados and Uganda that have been on the last for the past four years; and UAE and Gibraltar that had been added to the list in March 2022 and June 2022 respectively.