DR Congo and Côte d’Ivoire join Bulgaria and Monaco in clearing enhanced financial monitoring after completing reforms to tackle money laundering and illicit financing….reports Africa Daily News Desk
The Democratic Republic of the Congo (DRC) and Côte d’Ivoire have been removed from the Financial Action Task Force’s (FATF) grey list after completing action plans to address weaknesses in their systems for tackling money laundering and terrorist financing. Their removal, alongside Bulgaria and Monaco, was among the key decisions at the FATF’s latest plenary meeting in Paris, marking progress for two African countries in strengthening financial safeguards.
The meeting, held from 28 to 30 October under the presidency of the United Kingdom’s Giles Thomson, brought together representatives from the FATF’s global network of more than 200 jurisdictions and observers. The organisation said the four jurisdictions had demonstrated sufficient progress during on-site visits and would no longer be subject to increased monitoring.
The DRC had been working with the FATF and regional partners, including the Central African Action Group against Money Laundering (GABAC) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). Côte d’Ivoire worked with the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). Both countries will continue working with these regional bodies to sustain the reforms.
The grey list covers jurisdictions that have committed to address strategic deficiencies in their systems to counter money laundering, terrorist financing and the financing of proliferation. Removal indicates that agreed action plans have been completed, although improvements must be sustained.
The plenary also updated its monitoring statements. Vietnam remained under increased monitoring, with the FATF expressing significant concern about the pace of progress. It said it would consider further steps if the country failed to make tangible improvements before the next plenary meeting.
The FATF’s separate list of jurisdictions subject to a call for action was also updated. Myanmar and Iran remain high-risk jurisdictions. It urged Myanmar to address extensive fraud and scam activities, and Iran to criminalise terrorist financing and establish targeted financial sanctions.
Africa and global efforts against financial crime
Alongside the decisions on monitored jurisdictions, the plenary agreed to accelerate implementation of standards governing virtual assets and virtual asset service providers. Criminal networks are increasingly exploiting virtual assets for fraud, sanctions evasion, money laundering and terrorist financing, the FATF said.
A targeted review and faster follow-up process will focus on jurisdictions with materially important virtual asset activity, using objective criteria and taking account of their assessment status. Results are due in June and October 2027, with training and capacity-building support for affected countries.
The organisation also approved a report on illicit financial flows associated with scam compounds, which it described as one of the fastest-growing forms of organised crime. Due next week, the report examines how fraud proceeds move through connected criminal networks and professionalised “crime-as-a-service” operations.
The work forms part of a wider roadmap on combating fraud under the UK presidency. It is intended to help authorities disrupt criminal groups and deprive them of profits, with further research and recommendations expected.
The plenary also agreed to strengthen support for countries with limited resources to develop effective anti-money laundering and counter-terrorist financing systems. Measures will include tailored mutual evaluations for a group of developing countries, additional training for assessors and greater dialogue on practical capacity-building.
The FATF said financial integrity supports security, economic development and stability. A more proportionate, risk-based approach is intended to help countries direct resources towards the greatest threats rather than applying the same requirements regardless of national capacity or exposure.
New assessments and wider cooperation
Delegates adopted mutual evaluation reports for Mexico and the United States under the FATF’s new round of assessments. They assess the countries’ efforts against money laundering, terrorist financing and proliferation financing, and compliance with FATF recommendations. The reports are expected to be published in December after a quality and consistency review.
Under the new assessment process, countries receive a time-bound roadmap setting out key recommended actions to be completed within three years.
The plenary also welcomed Barbados, Namibia and Thailand to participate under their own flags for the first time through the FATF Guest Initiative. The initiative broadens participation across its global network.
The FATF will also advance a risk-based approach across public authorities and the private sector. A learning and development forum in Dallas on 1 and 2 December will bring together supervisors, financial intelligence units, law enforcement agencies and financial and non-financial institutions to discuss risk assessment and resource priorities.
The suspension of the Russian Federation from FATF membership remains in place, following the organisation’s earlier decision in February 2024.
For the DRC and Côte d’Ivoire, removal from the grey list marks an important formal step after completing agreed reforms. The FATF’s decisions also underline the continuing pressure on countries to strengthen oversight as financial crime adapts to digital assets, cross-border fraud and increasingly complex criminal networks.
