The FATF updated its statements on high-risk and other monitored jurisdictions at its plenary meeting held in June 2020. For more information, please consult:
The Financial Action Task Force (FATF) is an international body whose purpose is to develop and promote measures to combat money laundering, terrorist and proliferation financing. Switzerland also is a FATF member. Based on the results provided by the FATF’s International Co-operation Review Group (ICRG), high-risk and other monitored jurisdictions may be publicly identified in one of two documents published by FATF on three occasions throughout the year.
High-Risk Jurisdictions subject to a Call for Action
High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country. This list is often externally referred to as the “black list”.
Jurisdictions under Increased Monitoring
Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the ‘grey list’.
The FATF and FATF-style regional bodies (FSRBs) continue to work with the jurisdictions noted and to report on the progress made in addressing the identified strategic deficiencies. The FATF calls on these jurisdictions to complete their agreed action plans expeditiously and within the proposed timeframes. The FATF welcomes their commitment and will closely monitor their progress. The FATF does not call for the application of enhanced due diligence to be applied to these jurisdictions, but encourages its members to take into account the FATF information in their risk analysis.
The FATF continues to identify additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. A number of jurisdictions have not yet been reviewed by the FATF and FSRBs.
Account to be taken of the FATF statements
FINMA calls on all financial intermediaries to take the FATF information into account in their risk management strategies. It also requests recognised self-regulatory organisations to inform their members.