FATF Grey List 13th June 2025 Update; Croatia, Mali, and Tanzania Removed; Bolivia and Virgin Islands (UK) Added

Following a FATF Grey List update, Relevant Persons must take immediate action to revise the following components of their AML/CTF/CPF Program to ensure compliance and address emerging risks: 

• Firm-Wide Risk Assessment (FWRA): Relevant Persons must re-evaluate and update their exposure to MLTPF risks, ensuring that geographical risks associated with high-risk third countries are appropriately prioritized. 

• AML/CTF/CPF Policies, Procedures, and Controls: Relevant Persons should update their MLTPF risk management measures and ensure that the same are tailored and proportional to their MLTPF risk exposure. This exercise would involve the following:   

• • Adjust CDD procedures to ensure ECDD for customers from newly FATF Grey-Listed countries.  
• • Reassess and conduct re-CDD for existing customers whose risk category has changed due to FATF Grey-Listing, applying ECDD where required  
• • Update Customer Risk Assessment parameters to reflect geographical risk factors from the FATF Grey Listed countries accurately  
• • Provide AML/CTF/CPF training to relevant employees on the impact of Grey List updates and necessary compliance measures  

• Changing Configuration of AML/CTF/CPF Software: If a Relevant Person relies on software solutions for AML/CTF/CPF compliance tasks such as CDD, CRA, and transaction monitoring, it must recalibrate the software parameters to ensure alignment with the latest FATF Grey List update. 

By implementing these measures, Relevant Persons can ensure AML/CTF/CPF compliance with regulatory requirements and mitigate evolving MLTPF risks effectively.