What are FATF Blacklist and Grey List Countries? 19th June 2026

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Updated FATF Grey-Lists and Blacklists at a glance:

Currently, 22 jurisdictions are under FATF Grey List.
New Additions to Grey List: Iraq, Bosnia and Herzegovina
Deletions from Grey List: Algeria and Namibia
Blacklist: Remains unchanged (Iran, North Korea, Myanmar) as of 19 June 2026

What are FATF Blacklist and Grey list countries? June 2026

The Financial Action Task Force (FATF) is an independent organisation that works internationally to prevent money laundering and terrorism financing. It provides several recommendations for governments that help them to make their AML compliance framework sturdy and robust. FATF has issued a blacklist. This blacklist mentions the names of the countries which do not cooperate in the global efforts to prevent financial crimes such as money laundering, financing of terrorism, and financing of proliferation of weapons for mass destruction.

While the other list issued is the grey list of countries where the AML regulations are not entirely compelling and efficient enough to counter money laundering and terrorism financing.

About the FATF Blacklist and Grey list

In layman terms, blacklist is a word used to refer a list that needs to be avoided or considered unacceptable due to certain peculiarities, features, or attributes which are the cause for such ‘blacklisting’.

FATF blacklist is a list of countries that are not in alignment with FATF standards such as having in place, an AML/CFT and CPF regime to prevent the spread of ML/FT and PF.

Greylist is a word used to refer to a list that isn’t blacklisted for obviously unacceptable attributes and is neither white-listed nor considered fully standardised. Simply put, a greylist refers to a ‘grey’ area denoting ‘work-in-progress’ towards achieving standards required to move out of the grey area and be fully standardised.

FATF greylist is a list of countries with AML/CFT and CPF regimes in place, but such a regime has certain deficiencies and shortcomings that need to be worked on.

FATF Blacklist 2026 - Updated as of June 2026

What is FATF Blacklist?

The FATF Blacklist enlists the countries that do not have an efficient AML system or instead do not intend to control financial crimes. Their trade activities are not guided to prevent money laundering, financing of terrorism, or proliferation financing. Their AML frameworks are insufficient to deal with the global threat of money laundering. Their trade activities also put other countries at risk of financial fraud and jeopardised their economic system.

The FATF blacklist countries are officially known as High-Risk Jurisdictions subject to a Call for Action, which acts as a deterrent for countries doing business with the listed countries because of their non-cooperation in the global fight against financial crimes. The FATF blacklist makes other countries aware of the status of the blacklisted country, and they know that doing business with such a country or person hailing from these countries would be dangerous for their economy and the global economy.

With the FATF black list, the countries know which countries they need to put on the sanction lists, which helps their business organisations understand which countries they should not do business with. When FATF has deemed the blacklisted countries insufficient, other countries should cut off ties with the blacklisted countries until they improve their AML frameworks and satisfy the FATF criteria of being AML compliant, sufficient enough to remove their name from the FATF blacklist.

Please note that the FATF updates the blacklist three times annually, so businesses must continuously check them for new listing and delisting. The number of countries on the blacklist varies depending on the effectiveness of the AML compliance framework – if the blacklisted countries have improved their AML efforts to curb the evils of financial crimes. The FATF analyses the same and makes an informed decision about their continued listing or delisting. The FATF continuously monitors the country’s contribution and efforts to check on financial crimes and gathers reliable information on which the listing process is based.

As FATF does not have direct powers to ban a country from conducting business with other countries, its issuance of a blacklist is a recommendation to other countries dealing with a blacklisted country – not to continue such trade as it will put their business and the country’s financial system at risk.

As of 19 June 2026, only the Democratic People’s Republic of Korea (DPRK), commonly North Korea, Iran, and Myanmar are mentioned in the FATF blacklist – countries subject to a Call for Action.

FATF Grey List 2026 - Updated as of 19th June 2026

What is FATF Grey List?

Along with the blacklist, the FATF also issues the grey list, which enlists FATF Grey List countries with a higher risk of money laundering and terrorism financing (yes, definitely less than the blacklisted countries). These countries are put on the grey list because FATF is assured that they are working towards improving their AML compliance structure.

The main difference between the countries mentioned on the blacklist and the FATF grey list is that the former shows no signs of making an effort toward the AML compliance structure. At the same time, the latter follows the FATF recommendation to fix the issues in their AML compliance and regulatory framework.

The FATF scrutinises the grey list countries regularly to check the specified countries’ progress towards an efficient AML compliance framework. The FATF assesses the progress of the countries on the grey list. At present (as of 19th June 2026), 22 countries are on the FATF Grey list, including Angola, Côte d’Ivoire, Lebanon, and many more.

The FATF Grey List is also updated thrice annually, and de-listings and new additions are made based on the performance of the countries and the thorough analysis done by the FATF basis various parameters.

FATF Grey List – FATF Jurisdictions under Increased Monitoring – Update History

On 19^th June 2026, Iraq and Bosnia and Herzegovina were added to the FATF Grey List, while Algeria and Namibia were removed.

On 13th February 2026, Kuwait and Papua New Guinea were added to the FATF Grey List.

On 24th October 2025, South Africa, Nigeria, Mozambique, and Burkina Faso were removed from the Grey List.

On 13^th June 2025 , Croatia, Mali, and Tanzania were removed from the Grey List while Bolivia and the Virgin Islands (UK) were added to Grey list.

On 21^st February 2025, Philippines was removed from the FATF Grey List and Nepal, and Laos – Lao People’s Democratic Republic (Lao PDR or LPDR) were added to the Grey List, which is also known as jurisdiction under an increased monitoring list.

On 25 October 2024, Senegal was removed from the FATF Grey List and Algeria, Angola, Côte d’Ivoire, and Lebanon were added to the Grey List, which is also known as jurisdiction under an increased monitoring list.

On 28th June 2024, Jamaica and Türkiye were removed from the FATF Grey List and Monaco, and Venezuela were added to the Grey List.

On 23rd February 2024, UAE was removed from the FATF Grey List.

Source: Financial Action Task Force (FATF): Jurisdictions under Increased Monitoring as of 19 June 2026.

What is the difference between FATF blacklisted countries and greylisted countries?

Let us understand the difference between the FATF black list and the FATF grey list. The FATF blacklisted countries or jurisdictions suffer from strategic deficiencies in combating money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction. The FATF blacklisted jurisdictions are subject to enhanced due diligence and sanctions to protect the global financial system from the risks of money laundering, terrorist financing, and proliferation financing.

The FATF Greylisted countries are the jurisdictions working closely with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. The Greylisted jurisdictions are committed to resolving the identified issues within agreed timeframes and are subject to increased monitoring.

How many countries does the FATF grey list include?

The exact number of countries on the FATF grey list can be found by accessing the latest grey list issued by the FATF, as it is updated three times a year. Click here to know the number of countries included in the FATF list at present, as well as in previously issued grey lists.

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

How many countries are part of FATF?

FATF, as of 27^th October 2023, is composed of 40 members (still 40 as of 19 June 2026), with the latest addition of Indonesia. It relies on FATF-Style Regional Bodies (FSRBs) to achieve its goals and objectives. As of now, there are 9 FSRBs working closely with the FATF. Over 200 jurisdictions around the world have committed to the FATF recommendations through the global network of FSRBs and FATF membership.

What happens if FATF blacklists a country?

Once a country is placed on the FATF blacklist, the FATF member states and other international bodies will impose sanctions and restrictive measures against the blacklisted country. The blacklisted country can experience a negative impact on its economy as the economic sanctions imposed by various countries and global financial institutions will make it difficult for a blacklisted country to secure funds.

Further, the blacklisted country will experience declining international trade and foreign exchange inflows. International trade will become costly, and the blacklisted country’s banking system will find it difficult to survive.

What happens when a country is grey-listed?

Grey-listing is not a sanction and does not ban anyone from dealing with the country. It is a public signal that a jurisdiction has strategic deficiencies in its AML/CFT framework and is working under an agreed action plan to fix them. Even so, the signal carries real economic and financial consequences, because investors, global banks and counterparties treat grey-listing as a risk marker and adjust their behaviour accordingly.

Capital inflows decline on average by 7.6% of GDP when a country is grey-listed.

Source: Kida and Paetzold, The Impact of Gray-Listing on Capital Flows, IMF Working Paper WP/21/153 (2021).

The most studied effect is on capital flows. A 2021 IMF working paper found that capital inflows decline on average by 7.6 percent of GDP when a country is grey-listed, with foreign direct investment and portfolio inflows each falling by around 3 percent of GDP. Much of this is driven by higher compliance costs and de-risking, where global banks reduce or cut ties to avoid the added cost and risk, which in turn can lower financial inclusion and push some flows into less regulated channels.

In practice, a grey-listed country tends to experience the following:

Consequence	What it means in practice
Lower capital inflows	Foreign direct and portfolio investment slows as investors reprice country risk
Correspondent banking pressure	Global banks may restrict or withdraw correspondent relationships, making cross-border settlement harder
Costlier, slower payments	Cross-border payments and trade finance attract more checks, higher fees and delays
Currency and funding strain	Reduced inflows and confidence can weigh on the currency and raise the cost of external funding
Heavier external scrutiny	Foreign financial institutions apply enhanced checks, on a risk basis, to customers and transactions linked to the jurisdiction
Domestic compliance burden	The country must deliver its action plan within agreed timeframes to exit, which absorbs supervisory and institutional resources

What grey-listing does not mean

It is worth being precise, because this is widely misread. Grey-listing does not require firms anywhere to terminate relationships with the country, and FATF does not call for enhanced due diligence to be applied simply because a jurisdiction is grey-listed. The expectation is a risk-based approach: regulated entities treat the listing as one input into their country and customer risk assessment, and apply enhanced due diligence or monitoring only where their own assessment warrants it. This is different from the black list, where FATF does call for enhanced due diligence and, for the highest risk, countermeasures.

What it means for UAE regulated entities

For UAE Financial Institutions, DNFBPs and Virtual Asset Service Providers, a new grey-listing is a trigger to update the country risk inputs in the Enterprise-Wide Risk Assessment, refresh screening lists, and apply enhanced measures on a risk basis to relationships connected to the jurisdiction. Where transactions or activity involve a country subject to a call for action, the High-Risk Country Transaction or Activity Report (HRC or HRCA) obligations continue to apply. The aim is calibrated risk management, not blanket de-risking.

Grey-listing is also reversible. When a country completes its action plan and exits the list, these effects typically unwind as investor confidence and banking access recover, as the UAE saw after its own removal in February 2024.

Why North Korea is blacklisted by the Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) has blacklisted North Korea because the Democratic People’s Republic of Korea (DPRK) has failed to address the deficiencies in its money-laundering and terrorist financing (AML/CFT) regime, and it poses serious threats to the integrity of the global financial system. The FATF has serious concerns about North Korea’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing.

Is Russia on FATF blacklist?

As of 19 June 2026, Russia is not on the FATF blacklist. The Russian Federation is also not part of the FATF grey list. Instead, the FATF has suspended the Russian Federation’s membership and asked countries to remain vigilant for the emerging risks and apply necessary measures to mitigate the risks.

FATF Grey List, Blacklist, and AML Compliance

The FATF Grey List and Blacklist serve as a guiding light for businesses to assess the risks associated with jurisdictions and customers. The regulated entities take a risk-based approach and decide if the risks posed by a customer are within its risk appetite. The FATF lists for jurisdictions subject to a call for action, and jurisdictions under increased monitoring undergo review and change 3 times a year.

Are grey list countries high risk?

FATF grey list countries have a strategic deficiency in their AML/CFT regime, and depending on the risk-based approach taken by an entity, grey list countries are treated as high-risk countries.

Are blacklist countries high risk?

Yes, countries on the FATF black list are high-risk countries for money laundering, terrorist financing, and proliferation financing.

FATF Blacklist and Grey list - Screening & monitoring process

Financial institutions and the designated non-financial businesses and professions, including virtual asset service providers, must continuously monitor their customer databases against FATF Blacklist and Grey list countries.

The screening will help them be alert against the non-cooperative countries that are not taking the AML compliance process seriously. It will protect them from doing business with such countries, which can cause financial losses and reputational damage. So, continuous monitoring is necessary to protect a nation’s financial system from the risk of money laundering and non-compliance with the AML laws and regulations.

So, they should keep the identity verification, Customer Due Diligence, and Enhanced Due Diligence process updated and screen the customers regularly against the sanction lists, the FATF blacklist, and the grey list. Identification of suspicious transactions and accounts should be immediately reported to the authorities. With the timely submission of STRs and SARs – institutions will contribute to and help strengthen the fight against money laundering and financing of terrorism.

FAQs About the FATF Blacklist and Grey list

As per the FATF 19 June 2026 Plenary, there are 22 countries on the FATF Grey List, i.e., “jurisdictions under increased monitoring”.

Countries placed on the FATF Grey List are committed to addressing strategic deficiencies in their AML/CFT frameworks within agreed timelines. While these jurisdictions work towards strengthening their AML/CFT regimes, designated entities should apply a risk-based approach when dealing with customers connected to such countries.

Where the customer is from a FATF Grey List jurisdiction, or has a close business or transactional association with such a jurisdiction, the entity should assess whether the relationship presents a higher level of ML/TF risk. Where higher risk is identified, appropriate enhanced due diligence measures may be applied, such as obtaining additional information on the customer’s source of funds and source of wealth, understanding the purpose and intended nature of the transaction or business relationship, and seeking senior management approval before onboarding or continuing the relationship.

India is not included in the FATF grey list, as its measures to combat money laundering (ML)/terrorist financing (TF) and proliferation financing (PF) are comprehensive, according to the latest Mutual Evaluation of India, conducted in 2024.

In the latest Mutual Evaluation, India’s AML/CFT framework is found to be Compliant and Largely Compliant in most technical assessment parameters, with a moderate to Substantial level of effectiveness in the Effectiveness Parameters.

The 2024 Mutual Evaluation highlights India’s ability to effectively prevent, tackle and mitigate ML/TF and PF risks with relative ease, despite its large population. Currently, it is categorised as “regular follow-up,” requiring reporting to the Plenary within three years of the latest assessment.

Turkiye was included in the FATF grey list in 2021, but was removed from the same in 2024 due to significant measures taken to combat ML/TF.

Since February 2024, UAE is not on the FATF grey list.

Since 22^nd June 2025, KSA is not on the FATF grey list.

Yes, as of 19 June 2026, Kuwait is on the FATF grey list.

Yes, as of 19 June 2026, Papua New Guinea is on the FATF grey list.

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About the Author

Jyoti Maheshwari

CAMS, ACA

Jyoti has over 11 years of hands-on experience in regulatory compliance, policymaking, risk management, technology consultancy, and implementation. She holds vast experience with Anti-Money Laundering rules and regulations and helps companies deploy adequate mitigation measures and comply with legal requirements. Jyoti has been instrumental in optimizing business processes, documenting business requirements, preparing FRD, BRD, and SRS, and implementing IT solutions.

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