High-Risk Jurisdictions subject to a Call for Action & Jurisdictions under Increased Monitoring – October 2023

The FATF has updated – yet not changed – the list of High-Risk Jurisdictions subject to a Call for Action due to their deficiencies in countering money laundering, terrorist financing, and financing of proliferation, the so-called „black list“. Due to the COVID-19 pandemic, the FATF review process for Iran and DPRK was paused, as these countries are already subject to the FATF’s call for countermeasures. Iran reported in July 2023 with no material changes in the status of its action plan.
Thus, the FATF calls on its members and urges all jurisdictions to apply enhanced due diligence to these high-risk jurisdictions included in its 21 February 2020 statement. In the most serious cases, countries are called upon to apply counter-measures to protect the international financial system.
The DPRK remains one such high-risk jurisdiction. The FATF is concerned about the DPRK’s failure to address significant deficiencies in its anti-money laundering and combating the financing of terrorism regime. The FATF urges the DPRK to address these deficiencies and expresses serious concerns about the threat posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction.
Iran is another jurisdiction subject to the FATF’s call for counter-measures. Iran has not completed its action plan to address strategic deficiencies in its anti-money laundering and combating the financing of terrorism regime. The FATF calls on its members and urges all jurisdictions to apply effective counter-measures in line with Recommendation 19. Iran will remain on the list of high-risk jurisdictions subject to a call for action until it completes its action plan.
Myanmar is also subject to enhanced due diligence measures. Myanmar committed to addressing its strategic deficiencies but has not completed its action plan. The FATF strongly urges Myanmar to swiftly complete its action plan and calls on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from Myanmar.
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The FATF also updated its list of Jurisdictions under Increased Monitoring, having committed to resolving strategic deficiencies in their regimes within agreed timeframes and are subject to increased monitoring by the FATF. These jurisdictions are often referred to as being on the „grey list“.
Since October 2023, the FATF has reviewed the progress of several countries, including Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of Congo, Gibraltar, Haiti, Jamaica, Jordan, Mali, Mozambique, Nigeria, Panama, Philippines, Senegal, South Africa, South Sudan, Tanzania, Türkiye, UAE, and Uganda. Cameroon, Croatia, Syria, and Vietnam chose to defer reporting, and the statements previously issued for these jurisdictions may not necessarily reflect the most recent status of their AML/CFT regimes.
Following the review, the FATF now has also identified Bulgaria as a jurisdiction under increased monitoring. In October 2023, Bulgaria made a high-level political commitmentto collaborating with the FATF and MONEYVAL to enhance its AML/CFT regime. Following the adoption of its MER in May 2022, Bulgaria has been working on improving international cooperation. The FATF action plan includes measures such as implementing a national AML/CFT Strategy, addressing technical compliance deficiencies, and enhancing risk-based supervision. Bulgaria aims to strengthen its AML/CFT regime and improve international cooperation in combating money laundering and terrorist financing.
Albania, Cayman Islands, Jordan, and Panama are no longer subject to increased monitoring due to their significant progress in improving its AML/CFT regime.