- Cambodia and Morocco removed from FATF ‘Money Laundering Grey List’ due to significant progress in anti-money laundering efforts.
- Delisting achieved through legal and regulatory framework enhancements, improved financial intelligence operations, and stronger risk assessment procedures.
- FATF grey listing can deter investment and increase business costs, while delisting can boost the international business image and attract investment.
“Being on the FATF grey list can deter investors and increase the cost of doing business, while being delisted is expected to boost their image in the international business community and attract more foreign investment.”
Cambodia and Morocco were removed from the Financial Action Task Force (FATF) ‘Money Laundering Grey List’ after both countries made significant progress in their anti-money laundering and counter-terrorist financing efforts. The news was announced in a statement following FATF’s plenary meeting held in Paris from February 22-24, 2023.
The move is expected to boost the reputation of both countries in terms of doing business and attracting investments.
To achieve the delisting, Cambodia made significant progress in enhancing its legal and regulatory framework, improving its financial intelligence unit’s operations, and strengthening its risk assessment procedures. Cambodia also demonstrated its commitment to implementing the necessary reforms by undertaking a comprehensive review of its anti-money laundering and counter-terrorist financing system with technical assistance from FATF.
FATF, established in 1989, is an intergovernmental organization that monitors and promotes international cooperation in combating money laundering and terrorist financing. The organization sets standards and reviews countries’ compliance with them through mutual evaluations and regular monitoring.
Cambodia was placed on the grey list in 2019 due to deficiencies in its anti-money laundering and counter-terrorist financing regime. The country was given a 15-month action plan to address the issues, which was later extended to 24 months due to the COVID-19 pandemic.
Morocco, on the other hand, was placed on the grey list in 2019 due to strategic deficiencies in its anti-money laundering and counter-terrorist financing regime. The country made significant progress in addressing the issues by strengthening its legal framework, enhancing its financial intelligence unit’s operations, and improving its risk assessment procedures.
The delisting of Cambodia and Morocco from the grey list is expected to boost their image in the international business community and attract more foreign investment. Being on the grey list can deter investors and increase the cost of doing business as it signals that a country’s financial system has weaknesses that make it vulnerable to money laundering and terrorist financing.