A “blacklist” refers to a list of countries, entities, or individuals that are deemed non-compliant with international regulations aimed at preventing money laundering, terrorist financing, and other financial crimes. Countries on the blacklist, such as those identified by the Financial Action Task Force (FATF), are viewed as having severe deficiencies in their financial crime controls, posing significant risks to the global financial system. 

In the financial crime compliance space, dealing with blacklisted entities carries serious consequences. Financial institutions are generally prohibited from engaging in transactions with countries or individuals on the blacklist, and violations can result in heavy fines, legal penalties, and reputational damage. For compliance teams, monitoring for blacklisted entities is essential, as it ensures adherence to global standards and reduces the risk of facilitating criminal activities through the financial system. 

The terms grey list and whitelist are related to blacklist (when referring to them in connection to international bodies like the FATF), and they are explained later in this glossary.