The Financial Action Task Force (FATF), which monitors terrorism financing and money laundering, has retained North Korea (DPRK), Iran and Myanmar in its blacklist. These countries have been placed in this list due to serious shortcomings in their mechanisms to combat terrorism financing and money laundering (AML/CFT). The FATF has identified these countries as posing a significant risk to the international financial system and termed them ‘high-risk jurisdictions subject to a call for action’.
The FATF report notes that these countries have consistently failed to tackle illicit financial activities. Due to which global terrorism, arms smuggling and crime syndicates are encouraged. The organization has asked member countries to exercise extra caution in transactions with these sectors.
FATF reviews its list from time to time, but these three countries continue to remain blacklisted. Inclusion on the blacklist encourages financial institutions to distance themselves from these countries, putting pressure on domestic policymakers to reform regulation to comply with FATF standards.
Let us tell you that myanmar was blacklisted in October 2022 because it did not make sufficient progress in its action plan to prevent money laundering and terrorism financing. The FATF has appealed to the country to address the shortcomings and warned that if further improvements are not made by October 2025, restrictive measures may be considered.
It is noteworthy that in 2025, FATF made AML/CFT progress of various countries like Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Kenya, Lao PDR, Monaco, Mozambique, Namibia, Nepal, Nigeria, South Africa, South Sudan, Syria, Venezuela and Vietnam. Reviewed. During this period, Burkina Faso, Mozambique, Nigeria and South Africa were left out of the gray list.
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