Financial crimes watchdog, the Financial Action Task Force (FATF), has announced that Senegal has been removed from its list of countries requiring heightened oversight, commonly referred to as a grey list.

At the same time, FATF has added:

  • Algeria

  • Angola

  • Ivory Coast, and

  • Lebanon

to the list.

 

“When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes,” FATF said in a statement following FATF plenary October 23-25 2024..

 

As reported by BitKE in July 2024, many African countries are not compliant to the FATF requirements, particularly those governing virtual assets, the organization recently revealed.

REGULATION | Financial Action Task Force (FATF) Urges Countries to Develop Regulatory Frameworks for Rapidly Growing Virtual Assets

“The findings of the 2023 Targeted Update report, mutual evaluation and follow-up report results indicate that prohibiting VASPs effectively is… pic.twitter.com/ybYWoSYFhM

— BitKE (@BitcoinKE) July 12, 2024

Recent requirements to monitor virtual asset flows have played a key role in the recent addition of African countries to the FATF ‘grey list.’

The 3 countries are joining at least 10 African countries that are also under monitoring:

  • Angola

  • Algeria

  • Burkina Faso

  • Cameroon

  • Democratic Republic of Congo (DRC)

  • Ivory Coast

  • Kenya

  • Mali

  • Mozambique

  • Nigeria

  • Namibia

  • South Africa

  • South Sudan

  • Tanzania

  • Uganda

REGULATION | Kenya and Namibia Latest African Countries Added to Financial Action Task Force (FATF) Grey List

According to FATF, Kenya primarily faces risks associated with flows of money connected to terrorism financing from both domestic and international sources,… pic.twitter.com/zsHXN1vCCC

— BitKE (@BitcoinKE) February 26, 2024

According to a report by PriceWaterhouseCoopers (PwC), grey-listing adversely impacts a country’s:

  • International reputation

  • Trade relations

  • Investment opportunities, and

  • Diplomatic ties

among others.

REALITY CHECK | How FATF Grey Listing Affects a Country’s Financial and Economic Environment

According to a PwC report, investors consider grey-listing as a key factor when evaluating the risk of conducting business.

In this article, we take a look at the possible… pic.twitter.com/TU8PJHelXx

— BitKE (@BitcoinKE) March 3, 2024

This has a snowball effect on a country’s ability to raise capital, attract aid, access international finance, engage in international trade, and sustain diplomatic relationships.

The FATF Plenary congratulated Senegal for its significant progress in addressing the strategic anti-money laundering, countering financing of terrorism and countering financing of proliferation (AML/CFT/CPF) deficiencies previously identified during its mutual evaluation.

 

“Senegal has completed its Action Plans to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process.

Senegal will continue to work with the FATF and the Inter Governmental Action Group against Money Laundering in West Africa (GIABA) of which it is a member to continue strengthening its AML/CFT/CPF regimes.”

 

 

 

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