- The FATF blacklist was the common shorthand description for the Financial Action Task Force list of “Non-Cooperative Countries or Territories” (NCCTs).
- The FATF blacklist or OECD blacklist has been issued by the Financial Action Task Force since 2000 and lists countries which it judges to be non-cooperative in the global fight against money laundering and terrorist financing, calling them “Non-Cooperative Countries or Territories” (NCCTs).
FATF Grey List
- FATF’s grey list includes countries that are not doing enough to fight money laundering and terrorist financing.
- It conveys the impression that a country’s financial system is weak and effective measures aren’t being taken to halt money laundering or financing groups that have been banned for indulging in terrorist activities.
- Countries placed on these lists see a decrease in foreign investment and foreign companies hesitate to invest considering the potential ties to terrorist activities.
- Foreign loans from IMF, World Bank or Asian Development Bank etc are hit. It could also prove hard to raise debts from international markets.