The Financial Action Task Force (FATF), an international body that sets standards for anti-money laundering and countering the financing of terrorism, recently updated its list of jurisdictions with strategic deficiencies. This update followed a plenary meeting held in June 2025.
On June 13, the FATF added the British Virgin Islands and Bolivia to its list of Jurisdictions Under Increased Monitoring while removing Croatia, Mali, and Tanzania. The High-Risk Jurisdictions Subject to a Call for Action list remains unchanged, including Iran, North Korea (DPRK), and Burma. The FATF continues to urge jurisdictions to apply countermeasures against Iran and DPRK, whereas Burma is subject to enhanced due diligence but not countermeasures.
The U.S. Financial Crimes Enforcement Network (FinCEN) advises American financial institutions to consider these updates when reviewing their risk-based policies. "Jurisdictions Under Increased Monitoring" are those working with FATF to address deficiencies within agreed timelines. In contrast, "High-Risk Jurisdictions Subject to a Call for Action" require enhanced due diligence or countermeasures from FATF members.
Financial institutions must comply with due diligence obligations concerning foreign financial institutions as outlined under U.S. regulations. Money services businesses also have similar requirements regarding foreign agents or counterparties. These measures should not lead to indiscriminate de-risking but maintain appropriate relationships with customers.
The United Nations continues implementing sanctions through resolutions relevant to financial institutions, which should be familiar with such requirements alongside U.S.-specific sanctions programs managed by the Office of Foreign Assets Control (OFAC).
Burma remains on the high-risk jurisdiction list subject to a call for action by FATF members who are urged to apply enhanced due diligence proportional to risks associated with maintaining correspondent accounts in noncooperative countries. FinCEN encourages consulting existing guidance on transactions involving Burma.
Iran and DPRK remain in this category as well, prompting calls for all jurisdictions to implement countermeasures. U.S. financial institutions face extensive restrictions prohibiting correspondent account relationships with North Korean or Iranian entities per OFAC sanctions and FinCEN regulations.
Iran's behavior led President Biden to issue National Security Presidential Memorandum-2 on February 4, 2025, aimed at applying maximum pressure on Iran over nuclear threats and other concerns. Consequently, significant prohibitions exist against engaging in transactions involving Iranian interests under Executive Order 13599.
For jurisdictions removed from monitoring processes like Croatia or Mali after delisting decisions by FATF officials—financial entities should assess risks considering such developments while complying with existing obligations under relevant federal laws concerning suspicious activities indicative of money laundering among others accordingtoFinCENregulations
Questions about this release can be directed toward FinCEN's Regulatory Support Section via their website contact form provided online.