The Financial Action Task Force (FATF) has removed Bulgaria, Cote d'Ivoire, the Democratic Republic of the Congo (DR Congo), and Monaco from its Grey List. This decision was made after the four jurisdictions completed their action plans and introduced reforms to strengthen their anti-money laundering and counter-terrorist financing (AML/CFT) regimes. FATF President Giles Thomson announced the decisions during a press conference on October 30, following the Plenary meeting held from October 28 to 30 under the United Kingdom's Presidency.
The Plenary also approved a major report on scam compounds, which aims to help countries tackle one of the fastest-growing forms of organised crime globally. The report draws on over 100 case studies and examines scam compound activities across Africa, Europe, Central America, and Southeast and Eastern Asia. Thomson highlighted that fraud is estimated to cost around $500 billion globally each year, representing almost half of all crime in some countries.
The report on scam compounds reveals that annual losses run into tens of billions of dollars, while around 70 per cent of scam victims do not report the crime. Thomson noted that victims have been reported in more than 100 jurisdictions, and the report is scheduled to be published the following week. He also warned that artificial intelligence is enabling convincing impersonation attacks, while instant payment systems and virtual assets are helping criminals move funds within minutes and conceal their proceeds.
The FATF has agreed to accelerate its review of virtual asset standards through a new targeted review and follow-up processes to address gaps in implementing FATF standards on virtual assets and virtual asset service providers. The review will focus on jurisdictions with materially important virtual asset sectors, with results scheduled for publication in June and October. This move aims to strengthen the regulation of virtual assets and prevent their misuse for illicit activities.
The FATF also concluded a project examining challenges faced by lower-capacity countries in combating illicit finance. Thomson stated that 84 per cent of assessed anti-money laundering and counter-terrorist financing outcomes across the world's least developed countries were rated as having low effectiveness. The Plenary agreed on measures to strengthen support for these countries through a proportionate, risk-based approach, while maintaining FATF standards.
On its listing processes, the FATF has strengthened its statement on Myanmar, urging the country to address extensive fraud and scam activities originating there and warning of escalated action if progress remains inadequate. The FATF also highlighted deficiencies in Iran's legal framework relating to the criminalisation of terrorist financing and targeted financial sanctions. Thomson reiterated the FATF's call on its members and urged all jurisdictions to apply effective countermeasures on Iran.
The FATF expressed significant concern over Vietnam's pace of progress and urged the country to swiftly implement its overdue action plan. Bulgaria, Cote d'Ivoire, DR Congo, and Monaco were removed from the Grey List after demonstrating improvements in their AML/CFT regimes. However, Thomson stressed that being removed from the Grey List is not the end of the road for these countries, as they will continue working with their FATF-Style Regional Bodies ahead of their next evaluations.
Key points
- FATF removes Bulgaria, Cote d'Ivoire, DR Congo, and Monaco from Grey List after completing action plans.
- FATF approves a major report on scam compounds to help countries tackle organised crime.
- FATF agrees to accelerate review of virtual asset standards to prevent misuse.
