FATF removes four countries from grey list, keeps Vietnam under increased monitoring

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FATF grey list update

Highlights

Bulgaria, Ivory Coast, Congo, and Monaco are removed from the FATF grey list after positive progress addressing anti-money laundering and counter-terrorism financing deficiencies.
Vietnam remains on the FATF grey list, with the watchdog warning of possible further action if tangible improvements are not made by the next plenary meeting.
FATF retains Iran and Myanmar on its black list, reiterating warnings against Myanmar as oversight of financial crime risk persists for cross-border business.

FATF list changes and compliance status

As reported by Reuters, citing the Financial Action Task Force, Bulgaria, Ivory Coast, Congo and Monaco are removed from its grey list of jurisdictions subject to increased monitoring after what it describes as positive progress in addressing strategic deficiencies in anti-money laundering, counter-terrorism financing and proliferation financing controls.

The watchdog says jurisdictions placed under increased monitoring commit to resolving identified strategic weaknesses within agreed timeframes and remain subject to closer oversight while those measures are implemented.

Vietnam remains on the grey list, however, with the FATF expressing significant concern about the pace of progress. The body says it will consider next steps if Vietnam does not make tangible improvements to rectify its strategic deficiencies by the next plenary meeting.

Implications for financial risk oversight

The latest update alters the compliance profile of the four jurisdictions removed from the grey list, a status closely watched by banks, investors and companies assessing financial crime risk and cross-border business conditions.

The FATF also keeps Iran and Myanmar on its black list and reinforces its warning against Myanmar. Its black list covers countries and jurisdictions with serious strategic deficiencies in measures to counter money laundering, terrorist financing and proliferation financing.

Our earlier coverage of sovereign resilience under a higher-rate regime explained how persistent geopolitical shocks and elevated fiscal spending are increasing refinancing pressure and borrowing risks for governments, especially in emerging and frontier markets. We noted that surging energy and food costs can worsen inflation and strain public finances, making country risk assessments more volatile. This backdrop helps explain why financial institutions and companies are paying closer attention to jurisdiction-level risk signals and oversight frameworks in cross-border activity.

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