FATF Signals Major Regulatory Shift as Algeria, Namibia Exit High-Risk Watchlist

FATF Signals Major Regulatory Shift as Algeria, Namibia Exit High-Risk Watchlist​

The Reserve Bank of India has issued a significant update regarding the Financial Action Task Force (FATF) list of high-risk jurisdictions and countries under increased monitoring. The announcement follows the FATF public document titled 'High-Risk Jurisdictions subject to a Call for Action' released on June 19, 2026.

This update provides critical guidance for regulated entities navigating international financial standards. It highlights strategic deficiencies in certain jurisdictions regarding money laundering, terrorist financing, and proliferation financing.

Significant Changes to Global Monitoring Status​

The latest FATF plenary review has resulted in notable shifts regarding which countries are under the spotlight. Algeria and Namibia have been officially removed from the list of jurisdictions under Increased Monitoring following a comprehensive review by the FATF.

Conversely, Bosnia and Herzegovina and Iraq have been newly included on the list. These designations indicate that these jurisdictions possess strategic deficiencies in their regimes to counter illicit financial flows.

The identification of these nations occurs as part of ongoing efforts to identify and work with jurisdictions exhibiting strategic Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) deficiencies.

Heightened Due Diligence for Myanmar​

The status of Myanmar remains unchanged on the list of High-Risk Jurisdictions subject to a Call for Action since its inclusion in October 2022. The FATF continues to call on members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from Myanmar.

However, regulatory authorities have provided specific guidance to ensure that essential flows are not disrupted during this process. This includes ensuring that funds intended for humanitarian assistance, legitimate Non-Profit Organization (NPO) activity, and remittances remain unaffected.

The report also reaffirms that the statements regarding the Democratic People's Republic of Korea (DPRK) and Iran, adopted in February 2020, remain in full effect.

Operational Impact on Legitimate Trade and Business​

While the FATF has identified several jurisdictions as having strategic deficiencies, these classifications do not prevent regulated entities from engaging in standard economic activities. The guidelines explicitly state that this advice does not preclude legitimate trade and business transactions with the countries mentioned in the reports.

The updated list includes a wide range of jurisdictions currently under Increased Monitoring. These include Angola, Bolivia, Bulgaria, Cameroon, Côte d'Ivoire, Democratic Republic of the Congo, Haiti, Kenya, Kuwait, Lao People's Democratic Republic (Lao PDR), Lebanon, Monaco, Namibia, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, Virgin Islands (UK), and Yemen.

Detailed information regarding these jurisdictional statuses is available through the official FATF public statements released on June 19, 2026. The Financial Action Task Force continues to set global standards for the integrity of the international financial system by monitoring progress and reviewing laundering techniques.