Introduction to GAFI and its Role in AML/CFT Efforts
The Global Money Laundering and Terrorist Financing Prevention Group (GAFI) is an international organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering (ML) and terrorist financing (TF). GAFI comprises 190 jurisdictions, including all 40 OECD countries and 150 non-OECD jurisdictions.
GAFI’s Grey List: An Overview
GAFI maintains a grey list, also known as the International Co-operation Review Team (ICRT) list, which identifies jurisdictions with strategic deficiencies in their Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regimes. These jurisdictions are encouraged to develop and implement action plans with GAFI to address their identified deficiencies.
Recent Additions: Virgin Islands and Bolivia
In its ongoing review of AML/CFT compliance, GAFI added the British Virgin Islands and Bolivia to its grey list due to significant strategic deficiencies in their AML/CFT regimes. This addition brings the total number of jurisdictions on the GAFI grey list to 23.
GAFI’s Black List
Alongside the grey list, GAFI also maintains a black list containing only three countries: North Korea, Iran, and Myanmar. These jurisdictions are subject to enhanced due diligence by GAFI members and are encouraged to address their strategic deficiencies in AML/CFT regimes.
GAFI Standards Update
Following a Plenary meeting in France, GAFI approved changes to its standards that aim to enhance the security of cross-border payments. These amendments align with the G20’s initiative to make payments faster, cheaper, more transparent, and accessible.
Upcoming GAFI Resources
GAFI will publish a series of reports and resources in the coming months to assist countries in staying vigilant against emerging illicit financial threats. These resources will focus on a risk-based approach, including updated guidelines to support financial inclusion by integrating more individuals into the formal financial sector worldwide.
Key Questions and Answers
- What is GAFI? The Global Money Laundering and Terrorist Financing Prevention Group (GAFI) is an international organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering (ML) and terrorist financing (TF).
- What is the GAFI Grey List? The GAFI grey list identifies jurisdictions with strategic deficiencies in their Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regimes. These jurisdictions are encouraged to develop and implement action plans with GAFI to address their deficiencies.
- How many jurisdictions are on the GAFI Grey List? As of now, 23 jurisdictions are included in the GAFI grey list.
- What is GAFI’s Black List? The GAFI black list contains only three countries: North Korea, Iran, and Myanmar. These jurisdictions are subject to enhanced due diligence by GAFI members.
- What recent changes were approved by GAFI? GAFI approved changes to its standards that aim to enhance the security of cross-border payments, aligning with the G20’s initiative for faster, cheaper, more transparent, and accessible payments.
- What resources will GAFI publish? GAFI will release a series of reports and resources in the coming months to help countries stay vigilant against emerging illicit financial threats, focusing on a risk-based approach and updated guidelines for financial inclusion.
