The Financial Action Task Force (FATF) has a “grey list” for nations that don’t follow its anti-money laundering (AML) regulations for cryptocurrencies.” The FATF’s list of countries that it considers to be “Jurisdictions under Increased Monitoring” is known as the “grey list.””
The global financial watchdog is reportedly going to carry out annual audits to make sure nations are obeying AML and counter-terrorist funding (CTF) regulations on crypto providers.
As per the FATF, the nations on this list have agreed to fix “strategic deficiencies” within predetermined timelines and are thereafter the subject of increased surveillance.
Two countries that are known for their crypto activity, the United Arab Emirates (UAE) and the Philippines, are on the gray list as well, but according to FATF, both nations have made a “high-level political commitment” to cooperate with the organization to improve their AML and terror financing regulations.
It was discovered in March that a number of nations, including the Philippines, Malta, the Cayman Islands, and the United Arab Emirates, have “strategic inadequacies” in terms of AML and combating terror financing.
While failing to adhere to the crypto AML requirements won’t automatically place a country on the FATF’s grey list, it might damage its overall rating, tipping some to fall, according to one of the unnamed sources quoted by Al Jazeera.
Many nations, particularly those with virtual asset service providers (VASPs), are not in line with the watchdog’s rules for combating the financing of terrorism and anti-money laundering, according to a report from April 2022.