Daily Compliance Brief — FATF Publishes Updated High-Risk and Increased Monitoring Lists

July 1, 2026

Signal

The Financial Action Task Force (FATF) published updated lists of High-Risk Jurisdictions Subject to a Call for Action and Jurisdictions under Increased Monitoring following its June 2026 Plenary. According to the FATF statements released after the Plenary, Bosnia and Herzegovina and Iraq were added to the increased monitoring list, while Algeria and Namibia were removed after completing their action plans.

The updates immediately affect the global AML/CFT risk landscape by altering the jurisdictions that warrant heightened scrutiny and risk-based control measures. FATF determinations remain a key input for financial institutions when assessing country risk, customer onboarding requirements, and cross-border financial crime exposure.

The development signals continued supervisory emphasis on dynamic country risk management and timely incorporation of international standard-setting outcomes into compliance frameworks.

Why it matters

Institutions may need to reassess geographic exposure, customer portfolios, and correspondent banking relationships connected to affected jurisdictions.

Monitoring frameworks should ensure that country risk ratings, enhanced due diligence measures, and escalation procedures reflect the latest FATF assessments and any resulting changes in financial crime risk exposure.

Governance and reporting arrangements should demonstrate that FATF updates are reviewed promptly and incorporated consistently across enterprise-wide risk assessments, customer risk methodologies, and ongoing monitoring activities.