The Financial Action Task Force (FATF), an intergovernmental body tasked with developing policies to tackle Money Laundering and the Financing of Terrorism, continues to identify jurisdictions with strategic deficiencies in their regimes against these crimes. On June 28, 2024, FATF added Venezuela and Monaco to its “Increased monitoring” or “Grey List,” aiming to strengthen their mechanisms to combat Money Laundering, terrorist financing, and the proliferation of weapons of mass destruction.
In Venezuela’s case, despite making progress such as updating its national risk assessment, it has committed to enhancing its action plan in collaboration with FATF. This includes up to 7 tasks, such as promptly implementing specific financial sanctions and improving the use of financial intelligence by competent authorities. Similarly, Monaco has also committed to 6 measures, focusing on enhancing its understanding of risks related to Money Laundering and international tax fraud, as well as improving the enforcement of sanctions.
Finally, in addition to the commitments made regarding the improvement of the legal and regulatory framework, upon entering the “Grey List”, Venezuela and Monaco may face consequences such as increased transaction costs, reduced foreign investment, and reputational damage within the international economy.
