On the 13th June 2025, the Financial Action Task Force (“FATF”) issued its latest ‘High-Risk Jurisdictions subject to a Call for Action’ and ‘Jurisdictions under Increased Monitoring’ documents. These documents have been uploaded on the Financial Intelligence Analysis Unit (“FIAU”) website under the section ‘Country Statements’.
These updates provide important insights into the countries currently facing scrutiny for deficiencies in their Anti-Money Laundering (“AML”) and Countering the Financing of Terrorism (“CFT”) frameworks.
Key Updates on High-Risk Jurisdictions
The FATF has identified certain countries as “High-Risk Jurisdictions subject to a Call for Action”, effectively meaning they pose significant risks to the international financial system. The jurisdictions on this list are:
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Iran and North Korea (“DPRK”), which continue to face FATF’s calls for countermeasures due to serious AML/CFT deficiencies. The DPRK, in particular, has raised concerns due to its increased engagement with the global financial system, which amplifies risks related to proliferation financing.
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Myanmar has been added to the list with a clear warning that if no progress is made by October 2025, the FATF will consider implementing further countermeasures.
For businesses, it’s crucial to apply enhanced due diligence (“EDD”) measures as outlined under Regulation 11 of the Prevention of Money Laundering and Terrorist Financing Regulations (“PMLFTR”) to these high-risk jurisdictions.
Jurisdictions Under Increased Monitoring
The FATF has also reviewed progress in several countries and placed them under increased monitoring. These jurisdictions include:
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Angola, Bulgaria; Burkina Faso, Cameroon, Côte d’Ivoire, Croatia, Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia; Nigeria, South Africa, South Sudan, Tanzania, Venezuela, and Vietnam.
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Bolivia and the Virgin Islands (UK) have been newly added to this list.
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Algeria, Lao PDR, Lebanon, Nepal, Syria and Yemen have deferred reporting, meaning their previous status remains in effect.
Firms are encouraged to implement EDD for businesses and individuals operating in or with these countries, in line with Regulation 11(10) of the PMLFTR.
Jurisdictions No Longer Under Increased Monitoring
In a positive development, Croatia, Mali, and Tanzania have successfully addressed their AML/CFT deficiencies and are no longer subject to FATF’s ongoing scrutiny.
Ongoing Vigilance Is Key
The FATF continues to emphasize the importance of vigilance against emerging risks. The suspension of the Russian Federation’s membership remains in place, and jurisdictions must remain aware of the risks of countermeasures being circumvented.
For subject persons in Malta, adherence to the FATF’s guidelines and the PMLFTR is legally binding, and firms must ensure compliance to safeguard against financial crime.
A copy of the full FATF Public Statement be accessed here.
As a licensed service provider, we offer tailored compliance solutions to help businesses mitigate risks and ensure full adherence to due diligence obligations. For more information please free to contact us.
