FATF removes four countries from money laundering watchlist as Iran and North Korea remain high risk

WASHINGTON, Oct. 30, 2026 — The Financial Crimes Enforcement Network (FinCEN) has notified U.S. financial institutions of changes to the Financial Action Task Force's (FATF) lists of jurisdictions with strategic deficiencies in combating money laundering, terrorist financing and proliferation financing.

The FATF removed Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo and Monaco from its list of jurisdictions under increased monitoring, commonly known as the grey list, following successful assessments of their progress in addressing identified deficiencies. FinCEN advised U.S. financial institutions to consider the removals when evaluating country risks and applying their existing due diligence obligations.

The FATF's list of high-risk jurisdictions subject to a call for action remains unchanged, with Iran, North Korea and Myanmar continuing to face heightened scrutiny. Iran and North Korea remain subject to calls for effective countermeasures, while Myanmar is subject to enhanced due diligence requirements rather than countermeasures.

For Iran, the FATF reiterated four specific countermeasures, including restrictions on establishing financial institution branches and subsidiaries, limitations on financial transactions and virtual asset activities, and prohibitions on new correspondent banking relationships. Financial institutions and virtual asset service providers are also expected to review existing correspondent relationships on a risk-sensitive basis.

The FATF acknowledged limited progress by Iran in developing a framework for receiving international asset freezing requests but identified continuing deficiencies in its terrorist financing legislation and targeted financial sanctions framework. Iran remains subject to countermeasures until it completes its agreed action plan.

FinCEN also reminded U.S. financial institutions that existing U.S. sanctions and regulatory restrictions go beyond FATF recommendations. U.S. financial institutions are prohibited from maintaining correspondent accounts for Iranian and North Korean financial institutions, including under measures imposed through the USA PATRIOT Act and sanctions administered by the Office of Foreign Assets Control.

Myanmar remains subject to enhanced due diligence, with the FATF highlighting continuing concerns over money laundering risks associated with fraud and cyber scam operations. The FATF warned that it could consider countermeasures if Myanmar fails to demonstrate further progress by February 2027.

FinCEN emphasized that financial institutions must continue applying risk-based controls and reporting suspicious activity, while avoiding indiscriminate termination of banking relationships solely because customers or institutions operate in jurisdictions subject to increased monitoring.