Philippines Removed; Laos and Nepal Added: FATF Grey List February 2025 Update
Philippines Removed; Laos and Nepal Added: FATF Grey List February 2025 Update
On 21st February 2025, the Financial Action Task Force (FATF) concluded its February Plenary. During this Plenary, Philippines was removed, and Laos and Nepal were added to the FATF’s Grey List.
FATF is a global leader in efforts against financial crimes such as Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF). FATF conducts extensive research on these financial crimes and sets international standards on Anti-Money Laundering (AML), Combatting the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF). Its primary mandate is to lead and encourage international efforts for the mitigation of ML/TF and PF.
FATF releases a list of “Jurisdictions under Increased Monitoring” colloquially known as the FATF Grey List. This is a list of countries with strategic deficiencies in their AML/CFT/CPF regimes who are actively working with the FATF to address these deficiencies.
To know about the FATF Grey List Update History, check out our blog here.
To understand the differences between FATF Grey List and Blacklist, read our blog here.
Here are the changes FATF made to its Grey List after its latest Plenary:
Updates Made to the Financial Action Task Force (FATF) Grey List in February 2025
Countries Removed from FATF's Grey List (Jurisdiction Under Increased Monitoring):
- Philippines
Countries Added to FATF's Grey List (Jurisdictions under Increased Monitoring):
- Laos
- Nepal
The FATF Grey List as of 21st February 2025
1. Algeria
2. Angola
3. Bulgaria
4. Burkina Faso
5. Cameroon
6. Côte d’Ivoire
7. Croatia
8. Democratic Republic of Congo
9. Haiti
10. Kenya
11. Laos
12. Lebanon
13. Mali
14. Monaco
15. Mozambique
16. Namibia
17. Nepal
18. Nigeria
19. South Africa
20. South Sudan
21. Syria
22. Tanzania
23. Venezuela
24. Vietnam
25. Yemen
Significant Updates to the FATF Grey List for Regulated Entities in UAE
When FATF updates its Grey List, it triggers the necessity for revision and changes in a Regulated Entity’s AML/CFT/CPF compliance program. UAE’s AML/CFT/CPF laws require Regulated Entities to take into account FATF’s Grey List while implementing their AML/CFT/CPF Programs. Regulated entities need to adopt a risk-based approach while engaging with customers from FATF Grey List countries and implement ML/TF and PF risk control measures based on the level of financial crime risks posed by the customer.
Specifically, the FATF Grey List triggers changes in the following components of a regulated entity’s AML/CFT/CPF Program:
- Enterprise-Wide Risk Assessment (EWRA)
- AML/CFT/CPF Policies, Procedures, and Controls
- Customer Due Diligence (CDD) measures for customers from FATF Grey List countries
- Configuration of AML software
To know more about how the FATF Grey List update triggers changes in a regulated entity’s AML/CFT/CPF compliance process, read our extensive blog on “Impact of FATF Grey List Update on UAE DNFBPs: AML/CFT Compliance Imperatives”
Don’t Let FATF’s Grey List Update
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