FATF Blacklist
The
FATF Blacklist is the common shorthand description for the
Financial Action Task Force list of "Non-Cooperative Countries or Territories" (NCCTs); that is, countries which it perceives to be non-cooperative in the global fight against
money laundering and
terrorist financing. Although non-appearance on the blacklist is perceived to be a mark of approbation for
Offshore Financial Centres (or "tax havens") who are sufficiently well regulated to meet all of the FATF's critera, in practice the list encompasses a large proportion of countries do not operate as offshore financial centres.
The term non-cooperative is sometimes criticised as misleading, as a number of the countries which have appeared on the list from time to time appear, not because they deliberately propogate a culture which is perceived to assist money laundering, but because they simply lack the infrastructure or resources to cope with relatively sophisticated financial criminals who try to operate there.
The plenary list was published in June of 2000,[
1] and fifteen countries intially appeared on the list as being regarded as uncooperative in the fight against money laundering:#
Bahamas#
Cayman Islands#
Cook Islands#
Dominica#
Israel#
Lebanon#
Liechtenstein#
Marshall Islands#
Nauru#
Niue#
Panama#
Philippines#
Russia#
St Kitts and Nevis#
St Vincent and the GrenadinesThe initial list met much criticism from professionals experience in the offshore sector. The designation of the Cayman Islands as non-cooperative was thought to be harsh, particularly as the 2000 report itself acknowledged that "the Cayman Islands has been a leader in developing anti-money laundering programmes throughout the Caribbean region. It has served as president of the CFATF, and it has provided substantial assistance to neighbouring states in the region. It has demonstrated co-operation on criminal law enforcement matters, and uncovered several serious cases of fraud and money laundering otherwise unknown to authorities in FATF member states."
In the second report, in 2001 (including a supplemental report in September) a further eight countries were designated as non-cooperative:#
Egypt#
Grenada#
Guatemala#
Hungary#
Indonesia#
Myanmar#
Nigeria#
UkraineThe FATF produces annual reports, designated countries that go onto and come off the list.[
2] The general trend has been towards countries coming off the list, as there is an obvious incentive for countries to tighten up areas criticised in the FATF reports as not meeting the required international standards. To date, 21 countries have been de-listed, and only 8 countries have been added since the additional list (interestingly, none of which were
offshore jurisdictions).
The most recent list (the seventh), published in June 2006,[
3] only the following country remained designated as non-cooperative:
#Myanmar
Where the FATF feels that a country is not making sufficient to improve its regulation it may recommend "counter measures" against such countries. To date it has only done so against three countries: Myanmar, Nauru and Ukraine. However, counter measures have been withdrawn from all three, and as at July 2006 there are no countrer measures in effect against any country.
*
Anti-money laundering*
Financial Action Task Force on Money Laundering*
Money laundering*
Offshore Financial Centre
