On 23rd February 2024, Kenya was added to the Financial Action Task Force (“FATF”) grey list. As a global body responsible for setting standards on money laundering and counter terrorism financing measures, FATF listings can inform international and national policy responses. Some of the notable policy responses to FATF listings are by the European Union and the United Kingdom (identification and listing of high risk third countries), in addition to various agencies of the United States. Whereas these are the notable ones, other jurisdictions have their policies on the same.
The impacts of grey listing on a country can be numerous and far-reaching. In addition to perceived reputational risk, a 2021 IMF study suggests that grey listing, on average, leads to a decline in capital inflows by 7.6% of GDP. Nonetheless, the impact differs from country to country and is determined by the commitment, efforts and the speed that is taken to resolve the deficiencies that resulted in a country being grey listed. Additionally, the nature and size of the economy of the affected country and whether other countries in its region or its trading partners are also listed determines this impact.
Our panellists will explore these issues from a local and cross-border perspective, discussing and debating the possible impacts of grey listing across banking, trade and foreign direct investment. The session will assess strategies for navigating regulatory requirements including enhanced due diligence, increased transaction costs of compliance, and mitigating issues of risk and de-risking.
Opening Remarks
Moderator
Partner | Control Risks East Africa
Pupil Barrister | CANDEY
Speakers
Managing Director & CEO, Kenya & Africa | Standard Chartered
Senior Partner & Managing Director, East & Southern Africa | AfricInvest
Partner | Anjarwalla & Khanna (ALN Kenya)
In partnership with
