Kenya and Namibia Grey Listed

Following the Feb 2024 Plenary meeting of the Financial Action Task Force (FATF), Kenya and Namibia had the unfortunate honor of being added to the list of grey-listed jurisdictions.

The FATF is the global money laundering (AML) and terrorist financing watchdog. It sets international standards that aim to prevent organized crime, corruption, money laundering, terrorism financing, and proliferation financing. More than 200 jurisdictions have committed to implement the FATF's Standards, and their ratings and reports closely inform business decisions worldwide.

What does it mean to be grey-listed?

Grey-listed jurisdictions have strategic deficiencies in their regulatory bodies, structures, and regulatory framework needed to counter money laundering, terrorist financing, and organized crime. However, a grey-listed jurisdiction will have shown a willingness to address these deficiencies. Both Kenya and Namibia have been making efforts to align their legislative frameworks in compliance with FATF recommendations, but shortcomings still persist.

Impact on businesses

While the grey-listing label from the FATF does not call for enhanced due diligence requirements or sanctions on entities from grey-listed jurisdictions, expect a heightened risk analysis on all Kenyan and Namibian-related entities and operations going forward. Some classes of businesses and customers may find themselves subjected to extra due diligence screening and contractual indemnities and/or guarantees.

Countries added to the grey-list

• Kenya
• Namibia

Countries removed from the grey-list

• Uganda
• UAE
• Barbados
• Gibraltar

What to do?

With the heightened focus, expect foreign, regional, and even local entities to be extra cautious when engaging in onboarding, transactions, or even donations and sponsorships with clients from grey-listed jurisdictions. Conduct a thorough assessment of your business framework and operations to ensure you have adequate ethics and compliance procedures in place. Ensure that third parties you engage with comply with similar or higher standards of care regarding money laundering, terrorism financing, and proliferation financing.