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FATF definition High-risk country

Danger signThe FATF/GAFI is using the following definition for a High-risk jurisdiction:

High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation.

For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and, in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country.

This list is often referred to as the “black list”.

Note: Since February 2020, due to COVID-19 pandemic, the FATF has paused the review process for countries in the list of High-Risk Jurisdictions subject to a Call for Action, given that they are already subject to the FATF’s call for countermeasures.

Comment / observation

Black list is the right wording here, no regulator will accept you doing business with countries / jurisdictions on this list.

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