- At the recently held Financial Action Task Force (FATF) plenary meeting, UAE was confirmed to have been dropped from its ‘Jurisdictions under Increased Monitoring’ (Grey list).
- Additionally, Gibraltar, Barbados, and Uganda have also been removed from FATF’s Grey List.
- Kenya and Namibia have been added to the Grey List.
- FATF’s Black and Grey Lists
- FATF publicly lists countries with weak measures to combat Money Laundering (ML) and Terrorist Financing (TF) regimes in two documents:
- High-Risk Jurisdictions subject to a Call for Action (i.e. "Black List"): Jurisdictions with serious strategic deficiencies to counter ML, TF, and proliferation financing.
- Grey List: Jurisdictions with strategic deficiencies in their regimes to counter ML, TF, and proliferation financing.
- Currently, there are only 3 countries (Democratic People’s Republic of Korea, Iran, and Myanmar) in FATF Black List.
- FATF publicly lists countries with weak measures to combat Money Laundering (ML) and Terrorist Financing (TF) regimes in two documents:
- Significance of UAE’s removal from Grey List for India
- Boost to investment in Indian Non-Banking Financial Companies (NBFCs).
- A 2021 Circular from RBI stated that “investments in NBFCs from FATF non-compliant jurisdictions shall not be treated at par with that from the compliant jurisdictions.”
- Reduced compliance cost and cost of funding for financial institutions and individuals operating in UAE.
- Boost to investment in Indian Non-Banking Financial Companies (NBFCs).
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