Countries Violating Crypto AML Regulations Risk Being Placed on FATF's Grey List: Report

• FATF to put countries in its grey list if they won’t comply with crypto AML regulations.
• Grey list is a list of countries that the FATF considers to be "Jurisdictions Under Increased Monitoring."

Countries which fail to follow anti-money laundering (AML) regulations for cryptocurrencies may be included to the Financial Action Task Force's (FATF) "grey list."

The grey list is a list of countries classified by the FATF as "Jurisdictions Under Increased Monitoring."

The FATF says nations on this list have committed to addressing "strategic inadequacies" within agreed-upon timeframes and consequently face enhanced scrutiny.

It differs from the FATF "blacklist," which includes Iran and North Korea as nations with "severe strategic shortcomings in relation to money laundering."

At the moment, the grey list includes 23 nations, including Syria, South Sudan, Haiti, and Uganda.

The UAE and the Philippines are also on the grey list. According to FATF, both nations have made a "high-level political commitment" to engage with the global financial watchdog to reform their AML and CFT regimes.

Pakistan was formerly on the list, but after implementing 34 measures to address FATF concerns, they are no longer subject to enhanced scrutiny.

As per reports, while failure to comply with crypto AML requirements will not automatically place a country on the FATF's grey list, it may harm a country's overall rating, tipping some into heightened monitoring.

The AML watchdog revealed in April 2022 that several countries, particularly those using virtual asset service providers (VASPs), are not in conformity with its Combating the Financing of Terrorism (CFT) and AML requirements.

In March, it was discovered that several countries, including the United Arab Emirates, Malta, the Cayman Islands, and the Philippines, had "strategic inadequacies" in AML and CTF.

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