The “grey list” refers to a list of countries that are under increased monitoring by international bodies, such as the Financial Action Task Force (FATF), for deficiencies in their efforts to combat money laundering, terrorist financing, and other financial crimes. Although countries on the grey list are not as severely sanctioned as those on the “black list”, they are required to improve their compliance frameworks and are subject to heightened scrutiny. 

In the financial crime compliance space, the grey list serves as a warning signal for financial institutions. When a country is placed on the grey list, organisations must exercise greater caution in their dealings with entities from that jurisdiction. This often involves enhanced due diligence, stricter transaction monitoring, and more robust risk assessments to ensure that they are not inadvertently facilitating illegal activities linked to weak financial oversight.