FATF Updates High-Risk Jurisdictions

The Financial Action Task Force (FATF) has updated its lists of high-risk jurisdictions, impacting global financial and gambling industries.

With 25 jurisdictions now on the Grey List and three on the Black List, gambling operators must reassess their AML protocols.

The Philippines has been removed from the Grey List, signaling regulatory progress, but key risk areas remain.

Understanding these updates is critical for gambling businesses to maintain compliance and mitigate money laundering risks.

FATF Updates Grey and Black Lists: What It Means for Gambling Operators

Key Takeaways from FATF’s Updated High-Risk Jurisdiction Lists

• The Grey List now includes 25 jurisdictions under increased monitoring for financial crime concerns.
• The Black List remains unchanged, featuring North Korea, Iran, and Myanmar.
• The Philippines has been removed from the Grey List, indicating compliance improvements.

FATF’s High-Risk Lists: What Changed?

The Financial Action Task Force (FATF) has revised its Grey List and Black List, both of which identify jurisdictions with significant money laundering and terrorist financing risks.

These updates are particularly critical for gambling operators, as compliance with AML regulations requires assessing player risk based on these classifications.

Current FATF Listings

Grey List (25 jurisdictions):
Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Laos, Lebanon, Mali, Monaco, Mozambique, Namibia, Nepal, Nigeria, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, and Yemen.

Black List (3 jurisdictions):
North Korea, Iran, and Myanmar.

The most significant change? The Philippines has been removed from the Grey List, reflecting progress in addressing FATF’s concerns about financial crime oversight.

Why This Matters for Gambling Operators

Under Denmark’s Anti-Money Laundering (AML) Act, gambling operators must conduct Enhanced Customer Due Diligence (EDD) for players from high-risk jurisdictions.

While FATF’s Grey and Black Lists help identify risky regions, Danish gambling businesses must prioritize jurisdictions that appear on the EU’s High-Risk Third Country list, as specified in Section 17(2) of Denmark’s AML Act.

Key Compliance Steps for Operators

• Monitor FATF’s updates – Regularly review FATF’s classifications and update internal risk frameworks.
• Conduct Enhanced Due Diligence (EDD) – Apply stricter checks for customers linked to high-risk jurisdictions.
• Strengthen transaction monitoring – Identify unusual betting patterns or cross-border transactions involving high-risk regions.
• Implement stricter KYC measures – Ensure robust verification processes for players from flagged jurisdictions.

Pro Tip: Even though FATF’s Grey List is an indicator of potential risk, operators must focus on EU regulations, which dictate mandatory EDD measures for gambling platforms.

What’s Next? Global Financial Oversight Tightens

• Q2 2024: FATF will review compliance progress of Grey-Listed jurisdictions.
• H2 2024: Stricter AML measures and risk assessments are expected across global gambling markets.
• 2025 and Beyond: FATF’s next round of financial crime evaluations will shape further gambling industry compliance requirements.

Gambling Operators Must Stay Ahead of AML Risks

Gambling operators must continuously adjust their compliance strategies to align with evolving FATF regulations.

With 25 countries under heightened monitoring and global AML efforts increasing, gambling businesses must prioritize risk-based player assessments and enhance due diligence processes.

Ignoring these updates could lead to regulatory penalties, reputational damage, and financial risks.

Staying proactive with compliance ensures operators remain in line with industry best practices and maintain regulatory approval.