The FATF and MONEYVAL Grey List: What It Really Means and How It Affects Andorra

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🏁 A global framework that shapes financial reputation

The international system for preventing money laundering and terrorist financing (AML/CFT) is built around two central pillars: FATF and MONEYVAL. Their assessments and public lists directly influence the level of trust a country receives, its access to international payments, and the level of scrutiny applied by the global banking system.

This article explains clearly and practically what these bodies are, how they operate, what it means to appear on a risk list, and where Andorra stands within this global ecosystem.

⭐ FATF: the global standard-setter in AML/CFT

The Financial Action Task Force (FATF) — known in French as the Groupe d’Action Financière — is an intergovernmental soft-law body created by the G7 in 1989. While not a supranational authority, its standards have become the universal benchmark for assessing the AML/CFT risk of any jurisdiction.

Its influence is substantial: FATF recommendations are not binding law, yet they shape international banking operations and determine access to financial services worldwide.

📌 What exactly does FATF do?

🔹 Global standards: The 40 Recommendations

These form the foundation of AML/CFT legislation worldwide. They cover topics such as beneficial ownership, banking supervision, crypto-assets, DNFBPs, cross-border controls, use of cash, and more.

🔹 Mutual evaluations

These assessments measure both technical compliance (laws and regulations) and real effectiveness (results). A country’s ratings directly influence its international reputation.

🔹 Grey and black lists

These lists identify jurisdictions with strategic deficiencies. Being listed triggers enhanced due diligence, operational barriers, and immediate reputational impact.

🔹 Political and economic pressure

Even without direct legal authority, FATF can indirectly create financial isolation, stricter correspondent banking conditions, and higher compliance costs.

📌 Are FATF standards mandatory?

Formally, no. In practice, yes, because they:

• Guide risk-based supervision worldwide
• Determine when enhanced due diligence must be applied
• Influence global reputation and trust
• Open or close access to international financial markets

A country may ignore the recommendations, but it cannot avoid the consequences.

⭐ MONEYVAL: the Council of Europe’s oversight mechanism

MONEYVAL is a FATF-Style Regional Body operating under the Council of Europe (distinct from the European Union). It applies FATF methodology to member states and selected observer jurisdictions.

Main functions

• Conduct mutual evaluations applying FATF standards
• Monitor progress and issue follow-up reports
• Identify strategic deficiencies
• Assess the effectiveness of AML/CFT systems

➤ To explore international transparency standards, we recommend the article CRS: the global standard for tax transparency

🧾 FATF public lists

🟡 Grey List: jurisdictions under increased monitoring

The grey list includes countries with strategic deficiencies that have formally committed to a corrective action plan.
Below is the full list of jurisdictions under increased monitoring as of October 2025:

• Algeria
• Angola
• Bolivia
• Bulgaria
• Cameroon
• Côte d’Ivoire
• DRC
• Kenya
• Laos
• Monaco
• Namibia
• Nepal
• South Sudan
• Syria
• Venezuela
• Vietnam
• British Virgin Islands (BVI)
• Yemen
• Haiti
• Lebanon

👉 Burkina Faso, Mozambique, Nigeria and South Africa were recently removed.

🔴 Black List: high-risk jurisdictions

The black list includes jurisdictions with serious, persistent deficiencies, subject to counter-measures.
As of October 2025, the FATF black list includes:

• North Korea
• Iran
• Myanmar

In practice, their ability to operate internationally is extremely limited.

⏳ How often are the lists updated?

FATF updates its lists:

• At each plenary meeting (usually three times per year)
• When a jurisdiction completes its action plan
• When regressions are identified
• After mutual evaluations and follow-up reviews

Because situations evolve quickly, it is essential to check the most recent version.

📣 What does it mean to be a grey- or black-listed jurisdiction?

🟡 Grey-listed

A country on the grey list shows strategic deficiencies but is cooperating with FATF to address them. The typical consequences are:

• Medium-to-high AML/CFT risk
• Reputational limitations
• A formal action plan with FATF
• Enhanced due diligence by banks and businesses

🔴 Black-listed

These jurisdictions present severe and persistent deficiencies. Consequences are major:

• Financial isolation
• Counter-measures from international banks
• Deep reputational damage
• Extremely restricted access to payments and financial services

🔗 Andorra’s relationship with FATF and MONEYVAL

🧩 Andorra and MONEYVAL

Andorra is a full MONEYVAL member and undergoes its mutual evaluation process. Recent assessments have been excellent:

• C (Compliant) or LC (Largely Compliant) ratings for most recommendations
• No non-compliant ratings
• Explicit recognition of Andorra’s structural progress

This positions the country at a confidence level comparable to its European neighbours.

🧩 Andorra and FATF

Although not a direct FATF member, Andorra is not on any FATF list and applies FATF standards through MONEYVAL oversight.

In practical terms, this translates into:

• Easier cross-border payments
• Fewer enhanced-due-diligence requirements
• Greater trust from correspondent banks
• A more predictable and stable regulatory environment

➤ For deeper context, see the article Andorra’s banking system: regulation and international presence

💥 Real-world impact for companies and residents

Being absent from both FATF risk lists provides several tangible benefits:

• Fewer automatic blocks on international transfers
• Lower documentation burden with foreign banks
• Smoother access to global payment services
• Greater trust from partners and suppliers
• Better conditions for commercial and investment relationships

Conclusion

FATF and MONEYVAL form the backbone of the global system safeguarding financial integrity. Their lists define the level of international trust a country receives and exert direct influence on its banking operations.

Andorra is in a privileged position: high technical compliance, strong international recognition, complete absence from both risk lists, and ongoing MONEYVAL supervision. This ensures a stable, reliable environment for businesses, investors and residents.

If you’d like to understand how these standards may affect your personal or business activity — from opening a bank account to operating internationally — you can request a personalised meeting below or fill in the contact form.

Last updated: November 2025.