Updated list of FATF high-risk countries and countries under increased monitoring: 21st February 2025
FATF List of High Risk Countries
In the latest plenary, which concluded on 21st February 2025, Philippines was removed from the Financial Action Task Force (FATF) Grey List, Nepal & Laos were added to the Grey List. The FATF Grey List is also known as the Jurisdiction under Increased Monitoring list. This list includes countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
The FATF an international body that establishes intercontinental standards to combat money laundering, counter-terrorism financing and combat financing of proliferation of weapons of mass destruction, updates the list of jurisdictions under increased monitoring thrice annually.
List of Jurisdictions under Increased Monitoring (Grey List) as of 21st February 2025
Jurisdictions under Increased Monitoring - Grey List
FATF Grey List and Blacklist Update History:
In the latest plenary, which concluded on 21st February 2025, Philippines was removed from the Financial Action Task Force (FATF) Grey List, and:
- Laos
- Nepal
In the plenary that concluded on 25th October 2024, Senegal was removed from the Financial Action Task Force (FATF) Grey List, and:
- Angola,
- Algeria,
- Côte d’Ivoire
- Lebanon
- Monaco
- Venezuela
In its plenary, which concluded on 23rd February 2024, the FATF removed UAE, Barbados, Gibraltar, and Uganda from the Grey List, whereas:
- Kenya
- Namibia
- Bulgaria
The FATF established two statements as part of its listing and monitoring procedures to assure consistency with its international standards.
To learn more about the difference between FATF-blacklisted countries and greylisted countries: Checkout What are FATF Blacklist and Grey list countries?
High-Risk Countries Subject to a Call for Action - FATF Blacklist
FATF categorises certain countries as “Blacklist” countries. This “Blacklist” identifies jurisdictions with substantial strategic weaknesses publicly in their AML/CFT/CPF regimes and calls on all FATF members to conduct enhanced due diligence and, in the most severe cases, implement countermeasures to protect the international financial system from money laundering, funding of terrorism and proliferation risks stood by the identified nations. This list is commonly referred to as the “Blacklist.”
Recently, the FATF has added Myanmar to this list of High-Risk countries subject to a Call for Action. Accordingly, with effect from 21st October 2022, the FATF “Blacklist” stands as under
- Iran and the Democratic People’s Republic of Korea (subject to FATF call on its members/jurisdictions to apply countermeasures),
- Myanmar (subject to FATF call on its members/jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from Myanmar).
AML Compliance pertaining to grey-listed and blacklisted countries
All Financial Institutions (FIs) and Designated Non-Finance Businesses and Professions (DNFBPs) are required to have appropriate risk-based AML/CFT protections in place to limit the potential of money laundering and terror financing posed by countries subject to increased monitoring or listed as high-risk jurisdictions subject to a “Call for Action” by FATF.
As a result, FI and DNFBPs must screen customers against the FATF Jurisdictions under Increased Monitoring and High-Risk Jurisdictions Subject to a Call for Action while onboarding and continuously monitor their transactions throughout their business relationship. DNFBPs should ensure that their customer due diligence measures verify their customer’s residence in, or business with, listed countries and that their transaction monitoring measures can examine the size, frequency, and pattern of transactions involving high-risk countries to determine the possibility of occurrence of financial crimes such as money laundering.
FIs and DNFBPs must file suspicious transaction/activity reports (STR/SAR) to the Financial Intelligence Unit (FIU) when red flags are observed so that enforcement actions can be conducted.
Further, FIs and DNFBPs are obligated to report the transaction or activity with high-risk countries subject to a “Call for Action” to the FIU by filing High-Risk Country Transaction Report or High-Risk Country Activity Report (HRC/HRCA), as the case may be
Role of AML UAE
AML UAE is a leading AML compliance services provider in UAE. We help you with fulfilling all the requirements for AML and CFT in UAE. Our spectrum of AML compliance services is not restricted to national boundaries, but we also make sure that you comply with the global regulations of AML.
We can help you with:
- Creating firm-specific AML policies, procedures, internal controls, best practices, and guidelines for your smooth business operations
- Setting up an expert AML compliance department for your firm that can handle all AML-related activities
- Selecting the most effective and appropriate AML software for your business needs to ensure AML compliance
- Helping you in filing and submitting annual AML/CFT risk assessment reports with the UAE government
- Conducting training for your employees in handling KYC, screening, risk profiling, CDD, EDD, and filing of STRs
About the Author
Pathik Shah
FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a Chartered Accountant with more than 26 years of experience in governance, risk, and compliance. He helps companies with end-to-end AML compliance services, from conducting Enterprise- Wide Risk Assessments to implementing the robust AML Compliance framework. He has played a pivotal role as a functional expert in developing and implementing RegTech solutions for streamlined compliance.
