What happens when a country is greylisted?
When a country is grey listed, it is pressured to address the strategic deficiencies in its AML/CFT regime to maintain and strengthen its position in the global economy.
Greylisting can also result in restrictions on the country’s cross-border transactions, difficulties in getting loans from international financial institutions, and diminished prospects of getting foreign investments. It also damages a country’s reputation and standing in the international market.
Here is the article providing a comprehensive understanding of the FATF grey list.