Financial Action Task Force · FATF
The intergovernmental body that sets global standards for combating money laundering, terrorism financing, and proliferation financing — and 'grey-lists' countries that fall short.
Mandate
Established 1989 by the G7. Headquartered in Paris. 39 member jurisdictions plus regional bodies (ESAAMLG covers East and Southern Africa). Mandate: develop and promote policies to protect the global financial system against money laundering, terrorist financing, and proliferation of weapons of mass destruction.
How it works
The 40 Recommendations are the global benchmark. Each member's compliance is evaluated through periodic Mutual Evaluations conducted by FATF or a regional body. Countries with strategic deficiencies are placed on the 'grey list' (Increased Monitoring) or the 'black list' (Call for Action).
Why it matters
Kenya was placed on the FATF grey list in February 2024. Grey-listing raises compliance friction on every cross-border transaction involving Kenyan banks (correspondent banks ask for more documentation, charge more, sometimes withdraw lines), and affects Kenyan banks' ability to participate in trade finance and international payments. Removing grey-list status is a multi-year process requiring legislative, supervisory, and enforcement changes.
What to watch
FATF plenary outcomes (three per year). ESAAMLG evaluation reports. Kenya's grey-list status updates. The National Risk Assessment.
More from Rating agencies and private-sector infrastructure
- S&P Global Ratings, Moody's, Fitch
The 'Big Three' global credit rating agencies — they assign ratings to Kenya's sovereign debt and to major Kenyan corporate and bank issuers.
- GCR Ratings, Bloomfield
The Pan-African and regional rating agencies — provide local-scale ratings used in domestic capital markets where international ratings would be too granular.