Venezuela And Monaco On FATF’S “Gray List” Of Tax Havens

2024-06-28 03:28:56

(MENAFN- The Rio Times) The Financial Action Task Force (FATF) placed Venezuela and Monaco on its "gray list" for insufficient progress in curbing illicit financial flows.

However, Jamaica and Turkey have been removed for their significant progress in addressing the strategic AML/CFT deficiencies.

The decision follows discussions and a vote at FATF's plenary session in Singapore. FATF included these two countries on the list after careful consideration.

Being on the "gray list" means closer monitoring for both countries to address strategic deficiencies.

This change can lead to increased hesitancy from foreign investors. According to a 2021 IMF report, countries on the gray list experience significant reductions in capital inflows.

This decision comes at a crucial time for Venezuela , which faces compliance demands due to U.S. sanctions.

The timing is notable with the upcoming elections on July 28. President Nicolás Maduro seeks a third term.

Opposition candidate Edmundo González leads in polls by 20 percentage points. In early 2022, an evaluation team visited Venezuela to prepare a mutual evaluation report.

The team raised concerns about money laundering linked to the informal economy and illegal mining.

Terrorism financing threats were also noted, especially regarding Venezuela's economic ties with Iran. Despite some progress, FAT identified ongoing issues.

The organization called for increased financial sector supervision and accurate information on beneficial ownership.
Venezuela and Monaco on FATF's "Gray List" of Tax Havens
Monaco, facing its own crises, is critically affected by this inclusion. The principality awaits a report from the Group of States against Corruption (GRECO) on government anti-bribery efforts.

Following political scandals, Prince Albert II cut ties with several aides. He is now in a public dispute with one of them.

FATF acknowledged Monaco's "significant progress" since late 2022, such as establishing a financial intelligence unit.

However, concerns remain about handling money from tax fraud abroad and pursuing criminal assets.

FATF recommended Monaco increase resources to combat money laundering and ensure effective sanctions.

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