FATF increased monitoring & high-risk jurisdictions – June 2025
On 13th June 2025, the Financial Action Task Force (FATF) published its latest update on jurisdictions under increased monitoring—commonly referred to as the grey list—and those classified as high-risk, or on the blacklist. The lists are reviewed during the FATF plenary meetings and adjusted in response to the FATF’s findings, as well as global, political and economic developments.
Jurisdictions under increased monitoring (grey list) are cooperating closely with the FATF to resolve strategic shortcomings in their frameworks for combating money laundering (ML), terrorist financing (TF), and proliferation financing (PF). Being placed under increased monitoring indicates that the country has formally committed to addressing these deficiencies promptly, within agreed timelines, and remains under closer FATF scrutiny throughout the process.
Following the June 2025 review, the FATF now also identifies Bolivia and the Virgin Islands (UK) as jurisdictions under increased monitoring. After a successful completion of the action plan, Croatia, Mali and United Republic of Tanzania have been rewarded for their significant progress in improving their anti-money laundering, countering financing of terrorism and countering financing of proliferation (AML/CFT/CPF) regime and is no longer subject to increased monitoring by the FATF.
Jurisdictions identified with strategic deficiencies, placed by the FATF under increased monitoring as of June 2025, are:
- Algeria
- Angola
- Bolivia
- Bulgaria
- Burkina Faso
- Cameroon
- Côte d’Ivoire
- Democratic Republic of the Congo
- Haiti
- Kenya
- Lao PDR
- Lebanon
- Monaco
- Mozambique
- Namibia
- Nepal
- Nigeria
- South Africa
- South Sudan
- Syria
- Venezuela
- Vietnam
- Virgin Islands (UK)
- Yemen
High-risk jurisdictions subject to a call for action are those identified with significant strategic deficiencies in their regimes to counter ML/TF/PF. For these jurisdictions, obliged entities shall apply enhanced due diligence measures. In this regard, the FATF list remains unchanged with the below three jurisdictions as high-risk:
- Democratic People’s Republic of Korea (DPRK)
- Iran
- Myanmar
Furthermore, the suspension of the membership of the Russian Federation continues to stand. According to the FATF statement, all jurisdictions must continue to remain vigilant to the risks associated with Russia.
Outcomes Joint FATF-MONEYVAL Plenary, 12-13 June 2025 – Strategic Initiatives
Strengthening Payment Transparency – Recommendation 16
The FATF has updated Recommendation 16 to enhance transparency in cross-border payments over USD/EUR 1,000. The changes clarify sender and recipient information, streamline message requirements, and introduce technology safeguards to prevent fraud. The revised Standards will be published on 18 June 2025, with compliance expected by 2030, ensuring alignment with data protection and financial inclusion goals.
Financial Inclusion and the Risk-Based Approach
FATF endorsed new guidance to help financial institutions apply simplified measures in low-risk situations, supporting financial inclusion and addressing de-risking. A new national risk assessment toolkit and revised assessment methodology will aid countries and evaluators in applying the risk-based approach more effectively.
Mitigating Unintended Consequences
New FATF procedures aim to prevent misapplication of Standards that negatively impact civil society. These ensure timely identification and correction of unintended effects during mutual evaluations and follow-ups, leveraging the Global Network’s capabilities.
Responding to Illicit Finance Risks
FATF approved upcoming reports on proliferation financing and the most extensive global terrorist financing risk assessment to date. These offer insights into evolving threats and inform the Global Network and private sector. A targeted update on virtual assets will also be published.
International Collaboration and Support
New guidance developed with global partners will enhance international cooperation on money laundering enforcement. Side events and meetings during the Plenary aim to strengthen the Global Network’s capabilities and inclusivity, with guest participation from Kenya, the Cayman Islands, and Senegal.
Contact us at info@salvusfunds.comif you have any questions or require support with your AML regulatory requirements. We are always ready to answer your questions and support you in achieving regulatory compliance.
#StayAhead