The Financial Action Task Force (FATF) sets standards to ensure a coordinated global response to prevent money laundering and terrorist financing. It monitors countries to ensure they implement the FATF Standards fully and effectively.
The FATF identifies jurisdictions with strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) regimes. Such jurisdictions may be classified as being:
- Under increased monitoring.
- High-risk jurisdictions.
Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering and terrorist financing (ML/TF).
These jurisdictions must report on their progress in addressing their strategic deficiencies and if significant progress is made, they may no longer be subject to increased monitoring by the FATF. Alternatively, failure to address strategic deficiencies could result in jurisdictions becoming classified as high-risk.
The FATF has provided an update on the progress of jurisdictions under increased monitoring.
Jurisdictions no longer subject to increased monitoring by the FATF are Jamaica and Türkiye, who have made significant progress in improving their AML/CFT regimes.
June 2024 update
Bulgaria
Since October 2023, Bulgaria has committed to strengthening its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regime in collaboration with FATF and MONEYVAL. Key steps taken include adopting an action plan, establishing controls for Virtual Asset Service Providers (VASPs) and postal money operators, communicating changes to UN-targeted financial sanctions (TFS), and prioritizing Suspicious Transaction Reports (STRs). Moving forward, Bulgaria should focus on implementing its AML/CFT action plan, addressing compliance issues, and supervising postal money operators, currency exchanges, and real estate agents. Additionally, it needs to keep beneficial ownership information up-to-date, improve investigations and prosecutions of money laundering, pursue confiscation policies, and conduct financial investigations in terrorism cases. Addressing gaps in the Proliferation Financing (PF) TFS framework and monitoring vulnerable non-profits for terrorist financing (TF) abuse are also critical priorities.
Burkina Faso
Since February 2021, Burkina Faso has committed to enhancing its AML/CFT regime with the FATF and GIABA. Progress includes implementing a case management system for mutual legal assistance requests, developing software for managing Suspicious Transaction Reports (STRs), and establishing procedures for a cross-border declaration system. However, Burkina Faso needs to continue its efforts by strengthening the resource capacities of AML/CFT supervisory authorities, implementing risk-based supervision, maintaining updated ownership information for legal entities, and enhancing sanctions for transparency violations. Additionally, it must implement an effective TFS regime related to terrorist financing (TF) and proliferation financing (PF) and ensure risk-based monitoring and supervision of non-profit organizations (NPOs). Despite ongoing progress, the FATF notes that all deadlines have expired as of December 2022 and urges Burkina Faso to swiftly address these strategic deficiencies.
Cameroon
In June 2023, Cameroon committed to strengthening its AML/CFT regime with the FATF and GABAC. Cameroon should align its national strategies with the National Risk Assessment (NRA), ensure coordination between authorities, and prioritize international cooperation requests. The country needs to enhance risk-based supervision for banks and non-bank financial institutions (FIs) and DNFBPs, maintain up-to-date beneficial ownership information, and establish sanctions for transparency violations. Additionally, Cameroon should improve information exchange, demonstrate effective money laundering (ML) investigations and prosecutions, implement procedures for seizing and managing crime proceeds, and pursue terrorism financing (TF) investigations. Effective implementation of TF and proliferation financing (PF) targeted financial sanctions (TFS) regimes and a risk-based approach to non-profit organizations (NPOs) are also necessary.
Croatia
Since June 2023, Croatia has committed to enhancing its AML/CFT regime with the FATF and MONEYVAL. Progress includes detecting and investigating terrorism financing (TF) in line with its risk profile, addressing compliance issues with Recommendations 6 and 7, providing guidance on targeted financial sanctions (TFS) to reporting entities, and identifying non-profit organizations (NPOs) vulnerable to TF abuse. To further address its strategic deficiencies, Croatia needs to increase Financial Intelligence Unit (FIU) resources and analytical capabilities, improve law enforcement authorities’ (LEAs’) ability to detect, investigate, and prosecute money laundering (ML), including cases with foreign predicate offenses and misuse of legal persons, and ensure the application of provisional measures for securing proceeds. Additionally, Croatia should communicate changes in UN TFS regimes to reporting entities immediately and provide targeted outreach to NPOs and the donor community about potential vulnerabilities to TF abuse.
Democratic Republic of the Congo
Since October 2022, the Democratic Republic of the Congo (DRC) has committed to enhancing its AML/CFT regime with the FATF and GABAC. The DRC has made progress by disseminating the results of its National Risk Assessment (NRA) and providing resources to financial institution (FI) and designated non-financial businesses and professions (DNFBP) supervisors. To address its strategic deficiencies, the DRC needs to develop and implement a risk-based supervision plan, enhance the Financial Intelligence Unit’s (FIU) capacity for operational and strategic analysis, strengthen the capabilities of authorities for investigating and prosecuting money laundering (ML) and terrorist financing (TF), and demonstrate effective implementation of targeted financial sanctions (TFS) related to TF and proliferation financing (PF).
Haiti
Since June 2021, Haiti has committed to enhancing its AML/CFT regime with the FATF and CFATF. Key steps include improving the Financial Intelligence Unit’s (FIU) access to information through a new law. Despite difficult conditions, Haiti is recognized for its efforts. To address strategic deficiencies, Haiti needs to complete its ML/TF risk assessment, implement risk-based supervision for high-risk entities, maintain accessible beneficial ownership information, ensure the FIU is well-resourced, prosecute ML cases according to its risk profile, increase recovery of crime proceeds, address deficiencies in its sanctions regime, and monitor NPOs for TF risks. While progress is noted, the FATF urges Haiti to continue implementing its action plan as deadlines have expired.
Kenya
In February 2024, Kenya committed to enhancing its AML/CFT regime with the FATF and ESAAMLG. Since September 2022, Kenya has amended its AML/CFT laws to align with FATF standards and established a case management system for international cooperation. Moving forward, Kenya plans to complete a terrorism financing risk assessment, improve supervision of financial institutions and VASPs, enhance STR reporting, enforce targeted financial sanctions promptly, regulate trusts, maintain beneficial ownership information, improve financial intelligence usage, increase ML and TF investigations, ensure compliance with FATF Recommendations 6 and 7 in its TF regime, and revise NPO regulations to be risk-based and supportive of legitimate activities.
Mali
Since October 2021, Mali has committed to strengthening its AML/CFT regime with the FATF and GIABA. Mali’s efforts have included establishing a framework to monitor non-profit organizations (NPOs) vulnerable to terrorist financing (TF) abuse and implementing corresponding risk-based measures. Mali’s action plan to address strategic deficiencies involves ensuring timely access to accurate beneficial ownership information, resolving technical compliance issues with Recommendations 5 and 20, and enhancing the identification and investigation of TF activities aligned with its risk profile. Despite ongoing progress, all deadlines for these actions have expired, prompting the FATF to urge Mali to expedite the implementation of its action plan to address these deficiencies promptly.
Monaco
In June 2024, Monaco committed to strengthening its AML/CFT regime with the FATF and MONEYVAL. Since the adoption of its mutual evaluation report (MER) in December 2022, Monaco has made significant strides, including establishing a new combined Financial Intelligence Unit (FIU) and AML/CFT supervisor, improving detection and investigation of terrorism financing, and implementing targeted financial sanctions and risk-based supervision for non-profit organizations. Monaco’s future actions focus on enhancing risk understanding related to money laundering and tax fraud abroad, increasing outbound requests to seize criminal assets, applying sanctions for AML/CFT and ownership breaches, completing FIU resourcing, improving STR reporting quality, enhancing judicial efficiency through more resources for judges and prosecutors, and increasing property seizures linked to criminal activities.
Mozambique
Since October 2022, Mozambique has committed to enhancing its AML/CFT regime with the FATF and ESAAMLG. Mozambique’s efforts include initiating the collection of beneficial ownership information, developing a counter-terrorism financing (CFT) strategy, bolstering the capacity of CFT investigative and prosecutorial authorities, and addressing deficiencies in its targeted financial sanctions (TFS) framework. To further address strategic deficiencies, Mozambique aims to provide adequate financial and human resources to supervisors, implement a risk-based supervision plan, increase resources for the Financial Intelligence Unit (FIU) and enhance financial intelligence dissemination to authorities. Mozambique also plans to improve law enforcement agencies’ capabilities in investigating various money laundering (ML) offenses using financial intelligence, conduct training on the new TFS framework, and conduct a terrorism financing (TF) risk assessment for non-profit organizations (NPOs) to guide outreach efforts in compliance with FATF standards.
Namibia
In February 2024, Namibia committed to strengthening its AML/CFT regime with the FATF and ESAAMLG. Since September 2022, Namibia has made progress by enhancing stakeholder understanding of ML/TF/PF risks and improving international cooperation. Namibia’s future actions include strengthening risk-based supervision by enhancing human and resource capacities, conducting inspections informed by risk assessments, and applying effective sanctions for AML/CFT breaches. Additionally, Namibia aims to enforce enhanced due diligence and targeted financial sanctions promptly, improve beneficial ownership reporting, enhance the FIU’s capabilities through resources and training, bolster cooperation between the FIU and law enforcement for better financial intelligence integration, enhance operational capabilities of investigative authorities through resources and training, demonstrate effective ML/TF investigation and prosecution capabilities, and approve an amended National Counter Terrorism Strategy.
Nigeria
Since February 2023, Nigeria has committed to enhancing its AML/CFT regime with the FATF and GIABA. Nigeria has progressed by completing residual ML/TF risk assessments, enhancing financial intelligence dissemination by the FIU, and increasing its use by law enforcement in accordance with national risk profiles. Moving forward, Nigeria aims to strengthen international cooperation, improve risk-based supervision of financial institutions and designated non-financial businesses and professions (DNFBPs), enhance preventive measures in high-risk sectors, ensure timely access to beneficial ownership information, increase money laundering (ML) investigations and prosecutions, enforce currency declaration obligations, enhance terrorism financing (TF) investigations and prosecutions, and implement risk-based monitoring for vulnerable non-profit organizations (NPOs) without hindering legitimate activities.
Philippines
Since June 2021, the Philippines has committed to strengthening its AML/CFT regime with the FATF and APG. Progress includes increasing money laundering (ML) investigations and prosecutions according to risk, enforcing beneficial ownership transparency, and implementing risk-based supervision for designated non-financial businesses and professions (DNFBPs). Moving forward, the Philippines aims to address strategic deficiencies by enhancing AML/CFT controls related to casino junkets, applying cross-border measures at main sea/airports to detect currency false declarations and enforce confiscation actions based on risk, and increasing prosecution of terrorism financing (TF) cases aligned with risk. The FATF urges the Philippines to swiftly implement these measures as all deadlines have expired as of January 2023.
Senegal
In February 2021, Senegal committed to enhancing its AML/CFT regime with the FATF and GIABA. As of its June 2024 plenary, the FATF determined that Senegal has substantially completed its action plan and recommended an on-site assessment to verify sustained implementation of AML/CFT reforms with ongoing political commitment. Senegal’s key reforms include achieving a consistent understanding of ML/TF risks among relevant authorities, enhancing international cooperation for ML/TF investigations and asset tracing abroad, improving risk-based supervision and sanctions for financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs), increasing STR reporting, maintaining accurate beneficial ownership information, enhancing FIU analytical capabilities and financial intelligence dissemination, strengthening law enforcement capacity for ML investigations, establishing effective procedures for seizing crime proceeds, enhancing TF risk awareness and capacity, implementing targeted financial sanctions, and instituting risk-based monitoring for NPOs vulnerable to TF abuse.
South Africa
Since February 2023, South Africa has committed to enhancing its AML/CFT regime with the FATF and ESAAMLG. Progress includes implementing and updating supervisory risk assessment tools for designated non-financial businesses and professions (DNFBPs), updating its terrorism financing (TF) risk assessment, and bolstering the capacity of relevant counter-terrorism financing (CFT) authorities. South Africa’s ongoing action plan focuses on addressing remaining strategic deficiencies, including increasing outbound mutual legal assistance (MLA) requests to facilitate ML/TF investigations and asset confiscations aligned with its risk profile, ensuring effective sanctions for AML/CFT non-compliance, ensuring timely access to accurate beneficial ownership (BO) information and applying sanctions for violations, boosting investigations and prosecutions of serious money laundering and terrorism financing activities, enhancing seizure and confiscation of proceeds from diverse crimes, and effectively implementing targeted financial sanctions with robust domestic designation criteria.
South Sudan
Since June 2021, South Sudan has committed to enhancing its AML/CFT regime with the FATF and ESAAMLG. Progress includes becoming a party to relevant UN Conventions. To address strategic deficiencies, South Sudan aims to complete a comprehensive review of its AML/CFT Act with international support, fully implement key UN Conventions, structure competent authorities for risk-based supervision of financial institutions, establish a legal framework for accurate beneficial ownership information, operationalize an independent FIU, implement targeted financial sanctions compliant with UN Resolutions on terrorism and WMD financing, and commence risk-based supervision of NPOs vulnerable to terrorism financing abuse. The FATF notes limited progress with expired deadlines and urges South Sudan to swiftly implement its action plan, emphasizing strong political and institutional commitment to coordinate national AML/CFT efforts effectively.
Syria
Since February 2010, Syria has worked with the FATF and MENAFATF to address its AML/CFT deficiencies. By June 2014, the FATF recognized Syria’s progress in criminalizing terrorist financing and establishing procedures for freezing terrorist assets, determining that Syria had substantially addressed its action plan at a technical level. However, due to ongoing security challenges, the FATF has been unable to conduct an on-site visit to verify sustained implementation of reforms. The FATF continues to monitor the situation closely and plans to conduct an on-site visit as soon as conditions allow.
Tanzania
Since October 2022, Tanzania has committed to enhancing its AML/CFT regime with the FATF and ESAAMLG. Progress includes finalizing risk-based supervision manuals for real estate and designated non-financial businesses and professions (DNFBPs), enhancing law enforcement agencies’ capacity to seize and confiscate proceeds of crime, and providing guidance and training to the private sector on terrorism financing (TF) and proliferation financing (PF) obligations. Tanzania’s ongoing action plan focuses on improving risk-based supervision for financial institutions and DNFBPs, enhancing authorities’ capabilities for investigations and prosecutions of money laundering (ML), developing and implementing a comprehensive national counter-terrorism financing (CFT) strategy, and utilizing a recently completed TF risk assessment for non-profit organizations (NPOs) to guide outreach and training efforts.
Venezuela
In June 2024, Venezuela committed to enhancing its AML/CFT regime with the FATF and CFATF. Since the adoption of its MER in November 2022, Venezuela has progressed by updating its national risk assessment. Venezuela’s FATF action plan includes strengthening its understanding of ML/TF risks, expanding AML/CFT measures to cover all financial institutions and DNFBPs under risk-based supervision, ensuring timely access to accurate beneficial ownership information, enhancing the FIU’s resources and the use of financial intelligence by competent authorities, improving ML and TF investigations and prosecutions, implementing targeted measures to prevent NPO abuse for TF, and promptly applying TF- and PF-related targeted financial sanctions.
Vietnam
Since June 2023, Vietnam has made limited progress on its AML/CFT commitments with the FATF and APG. Key areas needing improvement include enhancing domestic coordination and cooperation to combat ML/TF, implementing effective risk-based supervision for FIs and DNFBPs, regulating virtual assets, addressing technical compliance deficiencies, and strengthening financial intelligence capabilities. Additional priorities include establishing a beneficial ownership regime, ensuring FIU independence, increasing ML investigations and prosecutions, and monitoring compliance with proliferation financing sanctions. Vietnam is urged to accelerate these efforts and improve information sharing with the FATF.
Yemen
Since February 2010, Yemen has made substantial progress in addressing its strategic AML/CFT deficiencies, as determined by the FATF in June 2014. Yemen achieved key milestones including criminalizing money laundering and terrorist financing, establishing procedures to freeze terrorist assets, enhancing customer due diligence and suspicious transaction reporting requirements, issuing guidance, and strengthening the supervisory and operational capacities of financial sector authorities and the financial intelligence unit. Despite completing its action plan, Yemen’s progress verification has been delayed due to security challenges. The FATF plans to conduct an on-site visit as soon as conditions permit to ensure sustained implementation of reforms.
Key takeaways
The FATF’s latest update on jurisdictions under increased monitoring underscores ongoing efforts worldwide to combat money laundering and terrorist financing. While countries like Jamaica and Türkiye have successfully exited heightened scrutiny, others continue to implement crucial reforms. Challenges persist, particularly in jurisdictions facing security and capacity constraints, necessitating sustained international cooperation and robust national commitment to achieve effective AML/CFT regimes globally. The FATF remains vigilant in monitoring progress and supporting jurisdictions in their efforts to strengthen financial integrity and safeguard against illicit financial activities.
