Module: General Practice
Q86: Consider the FATF's monitoring mechanisms and the consequences of being listed as a "High Risk" jurisdiction. Which of the following statements are correct?
FATF Mutual Evaluations assess a country on two distinct levels: "Technical Compliance" (having the laws on paper) and "Effectiveness" (actual results like convictions and asset seizures).
Countries listed on the "Black List" (High-Risk Jurisdictions subject to a Call for Action) currently include Iran, North Korea, and Myanmar.
Being placed on the "Grey List" (Jurisdictions under Increased Monitoring) has no real economic impact and is merely a diplomatic warning.
When a country is placed on the Grey List, international banks are required to apply Enhanced Due Diligence (EDD) to transactions involving that jurisdiction, which often slows down trade and capital flows.
Countries listed on the "Black List" (High-Risk Jurisdictions subject to a Call for Action) currently include Iran, North Korea, and Myanmar.
Being placed on the "Grey List" (Jurisdictions under Increased Monitoring) has no real economic impact and is merely a diplomatic warning.
When a country is placed on the Grey List, international banks are required to apply Enhanced Due Diligence (EDD) to transactions involving that jurisdiction, which often slows down trade and capital flows.
✅ Correct Answer: B
The correct answer is Option B. FATF evaluates technical compliance and effectiveness.
Black List includes Iran, DPRK, Myanmar.
Grey listing has severe economic impacts, triggering EDD.
FATF lists are current affairs for the IIBF AML KYC Exam 2026.
Black List includes Iran, DPRK, Myanmar.
Grey listing has severe economic impacts, triggering EDD.
FATF lists are current affairs for the IIBF AML KYC Exam 2026.