PARIS: The world’s top financial crime watchdog gave four countries a clean bill of health on Friday (Oct 30), taking Bulgaria, Ivory Coast, Democratic Republic of Congo and Monaco off its “grey list” – even as it put Vietnam on notice for dragging its feet on reform.
Landing on the grey list doesn’t bring sanctions, but it does make life more costly: Banks and other financial institutions tend to scrutinise transactions more closely, which can dampen investment and capital flows.
As for Vietnam, the Financial Action Task Force was blunt: “The FATF will consider next steps if Vietnam does not make tangible improvements to rectify its strategic deficiencies by the next Plenary meeting.”
On the four countries it removed from the list, the agency cited their “positive progress in addressing strategic anti-money laundering and countering the financing of terrorism and proliferation financing deficiencies identified during their mutual evaluations.”
The DRC’s Finance Minister Doudou Roussel Fwamba Likunde Li-Botayi welcomed the decision.
“Removal from the list is expected to reduce the cost and friction of cross-border transactions for Congolese banks, businesses and citizens, support correspondent banking relationships,” he said in a statement.
Monaco’s minister of state Christophe Mirmand struck a similar note, calling it recognition of sustained effort: “This decision recognisxes more than two years of concrete, rigorous and coordinated work by all of the State’s authorities and departments.”
Myanmar, Iran and North Korea remain on ‘black list’
The agency left Iran and Myanmar on its “black list” of countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing and financing of proliferation.
The agency also renewed its push for Myanmar to crack down on the widespread fraud and scam operations running out of the country.
Earlier on Friday, Reuters reported that Japan had been lobbying the watchdog to remove Myanmar from the blacklist in hopes of smoothing the path for business there. Myanmar landed on the list in 2022 after the military coup sent the country spiralling into turmoil and civil war.
North Korea, too, stayed on the black list. Analysts have blamed hackers there for the theft of US$6.3 billion from Binance, the world’s largest cryptocurrency exchange – a heist some believe could be the biggest in financial history.
For years, Pyongyang has leaned on state-linked cyber units for espionage and to rake in revenue through financial theft, according to US and South Korean authorities as well as cybersecurity experts – allegations North Korea routinely denies.
Blacklisting is the harshest label FATF can hand out, and it has serious implications: frozen investments, soaring compliance costs and banks effectively cut off from the global financial system. – Reuters
