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RULES | Namibia and Kenya The Financial Action Task Force (FATF) has added new African countries to its Grey List.

Kenya and Namibia have been added to the Financial Action Task Force’s (FATF) “grey list” of nations that need closer scrutiny because of insufficient steps taken to prevent money laundering and the funding of terrorism.

Kenya and Namibia were added by the FATF in a statement, “at this Plenary, to the list of jurisdictions subject to increased monitoring.”

Kenya’s Treasury declared that the country’s financial stability will be negatively impacted by the designation, but it reaffirmed its complete dedication to carrying out the FATF’s action plan. One of the strategies being used to solve this is municipal regulation of the expanding bitcoin trade.

According to FATF, Kenya is particularly at risk from financial flows that are linked to the financing of terrorism, both from within and outside the country. Cryptocurrencies also provide a threat.

Namibia’s Foreign Direct Investment may suffer if the country is put on the “grey list,” according to the Financial Intelligence Center of Namibia.

As per the most recent report on October 27, 2023, the two countries are joining a minimum of ten African nations that are also being monitored.

  • Burkina Faso
  • Cameroon
  • Democratic Republic of Congo (DRC)
  • Mali
  • Mozambique
  • Nigeria
  • Senegal
  • South Africa
  • South Sudan
  • Tanzania
  • Uganda

Uganda’s Ministry of Finance, however, asserts that the country is leaving the “grey list” after an on-site evaluation was carried out recently to confirm the changes made by Uganda to combat money laundering and the funding of terrorism.

South Africa, which joined Nigeria in 2023, asserts that it is moving forward in resolving the concerns brought up.

“To address the identified problem areas, the government enacted two significant legislative amendments in late 2022: the Protection of Constitutional Democracy Against Terrorist and Related Activities Amendment Act (2022) and the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act (2022).” The majority of the identified legislative shortcomings are addressed by these adjustments, according to the South African Treasury’s 2024 budget assessment.

“The FATF publicly re-rated 15 of the 20 defects as no longer deficient at its plenary meeting in October 2023. Fourteen recommendations are now completely or largely compliant, and one suggestion is no longer applicable. As a result, South Africa must rectify five unresolved technical issues with which it is only partially compliant. The goal of the government is to resolve these by the end of October 2024.

Leading international action against money laundering, financing of terrorism, and proliferation is the Financial Action Task Force (FATF).

The FATF investigates the financing of terrorism and money laundering, pushes international norms to reduce the dangers, and evaluates whether nations are acting effectively.

The FATF Recommendations guarantee a coordinated international response to stop terrorism, organized crime, and corruption. They support law enforcement in pursuing the financial gains of criminals involved in drug trafficking, human trafficking, and other offenses. The FATF strives to halt the financing of WMDs as well. In response to emerging threats, such the regulation of virtual assets, which have proliferated with the rise in popularity of cryptocurrencies, the FATF is constantly fortifying its international standards.

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