Quick Answer: What Are the FATF Grey List and Blacklist Countries (2026)?
As of February 2026, the FATF blacklist (High-Risk Jurisdictions subject to Call for Action) contains 3 countries: Iran, North Korea, and Myanmar. The FATF grey list (Jurisdictions under Increased Monitoring) contains 23 countries, including Bulgaria, Kuwait, Lebanon, Syria, Venezuela, and Yemen. These lists identify nations with strategic deficiencies in anti-money laundering and counter-terrorism financing regimes.
What Is the FATF? Financial Action Task Force Explained
The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 by the G7 Summit in Paris. Its primary mission is to set international standards for combating money laundering (AML), terrorist financing (CFT), and the proliferation of weapons of mass destruction. FATF currently has 40 member jurisdictions and 2 regional organizations, representing most of the world’s major financial centers.
FATF publishes two critical lists that affect the global financial system: the FATF blacklist (formally called the “High-Risk Jurisdictions subject to a Call for Action”) and the FATF grey list (formally called “Jurisdictions under Increased Monitoring”). These lists are reviewed and updated at every FATF Plenary session — approximately three times per year.
FATF Blacklist Countries 2026 (High-Risk Jurisdictions)
The FATF blacklist identifies jurisdictions with critical deficiencies in their AML/CFT regimes that are not cooperating with FATF to address those deficiencies. FATF calls on its members and other jurisdictions to apply counter-measures (the strongest available financial restrictions) against blacklisted countries.
As of the February 13, 2026 FATF Plenary, the blacklist contains three countries:
| Country | Status Since | Key Deficiencies | Consequence Level |
|---|---|---|---|
| 🇮🇷 Iran | Ongoing since at least 2008 | Terrorism financing risks; lack of criminalization of terrorist financing; deficient AML framework | Counter-measures required |
| 🇰🇵 North Korea (DPRK) | Ongoing | WMD proliferation financing; no effective AML/CFT regime; ongoing evasion of international sanctions | Counter-measures required |
| 🇲🇲 Myanmar (Burma) | Ongoing | Military coup 2021 undermined AML/CFT framework; failure to address action plan items | Counter-measures required |
FATF Grey List Countries 2026 (Jurisdictions Under Increased Monitoring)
The FATF grey list includes countries that have been identified as having strategic deficiencies in their AML/CFT systems but are actively working with FATF to address those deficiencies under an agreed action plan. As of February 13, 2026, the grey list contains 23 jurisdictions:
| Country / Territory | Date Added | Key AML/CFT Concerns |
|---|---|---|
| 🇩🇿 Algeria | Prior to 2024 | Deficiencies in AML supervision and beneficial ownership transparency |
| 🇦🇴 Angola | Prior to 2024 | Weak AML framework; limited beneficial ownership reporting |
| 🇧🇴 Bolivia | June 2025 | Newly added; deficiencies in AML/CFT compliance |
| 🇧🇬 Bulgaria | October 2023 | Weaknesses in financial sector AML supervision; organized crime links |
| 🇨🇲 Cameroon | June 2023 | Insufficient AML/CFT measures in the financial sector |
| 🇨🇮 Côte d’Ivoire | Prior to 2024 | Deficiencies in AML supervision and law enforcement |
| 🇨🇩 DR Congo (DRC) | Prior to 2024 | Weak AML/CFT institutional framework; informal economy risks |
| 🇭🇹 Haiti | Prior to 2024 | Political instability severely impairs AML/CFT implementation |
| 🇰🇪 Kenya | February 2024 | Gaps in beneficial ownership, real estate, and virtual asset regulation |
| 🇰🇼 Kuwait | February 2026 (newly added) | AML supervision gaps; deficiencies in cash transaction monitoring |
| 🇱🇦 Laos (Lao PDR) | Prior to 2024 | High corruption and narcotics trafficking risks; weak AML regime |
| 🇱🇧 Lebanon | Prior to 2024 | Banking sector crisis; political instability affecting AML enforcement |
| 🇲🇨 Monaco | Prior to 2024 | Deficiencies in supervision of designated non-financial businesses |
| 🇳🇦 Namibia | February 2024 | Emerging virtual asset risks; gaps in AML/CFT supervision |
| 🇳🇵 Nepal | Prior to 2024 | Deficiencies in beneficial ownership, correspondent banking oversight |
| 🇵🇬 Papua New Guinea | February 2026 (newly added) | AML/CFT framework deficiencies; informal sector risks |
| 🇸🇳 Senegal | Prior to 2024 | Gaps in AML supervision, particularly in real estate and gold sectors |
| 🇸🇸 South Sudan | Prior to 2024 | Severe AML/CFT weaknesses due to ongoing conflict and institutional fragility |
| 🇸🇾 Syria | Prior to 2024 | Conflict-related collapse of financial oversight institutions |
| 🇻🇪 Venezuela | Prior to 2024 | Corruption, narco-state linkages, lack of AML enforcement |
| 🇻🇳 Vietnam | June 2023 | Gaps in AML supervision and beneficial ownership transparency |
| 🇻🇬 British Virgin Islands | June 2025 | Offshore financial center risks; deficiencies in beneficial ownership |
| 🇾🇪 Yemen | Prior to 2024 | Houthi-related terrorism financing; AML framework collapse |
FATF Blacklist vs. Grey List: What’s the Difference?
While both the FATF blacklist and FATF grey list identify jurisdictions with AML/CFT deficiencies, the key difference lies in the level of risk and the degree of cooperation with FATF:
| Criterion | FATF Blacklist (High-Risk) | FATF Grey List (Increased Monitoring) |
|---|---|---|
| AML/CFT Deficiencies | Significant, unresolved strategic deficiencies | Strategic deficiencies identified and being addressed |
| Cooperation with FATF | Not cooperating; no credible action plan | Actively cooperating with FATF on agreed action plan |
| Risk Level | High/Severe — systemic risk to international financial system | Elevated — poses risk but committed to reform |
| Required Response | Counter-measures: EDD, transaction restrictions, limits on financial relationships | Enhanced Due Diligence (EDD) required |
| Impact on Banks | Banks must apply enhanced scrutiny or refuse relationships | Banks must apply EDD; relationships usually permitted with extra checks |
| Current Countries (2026) | Iran, North Korea, Myanmar | 23 countries (incl. Bulgaria, Kuwait, Lebanon, Syria, Venezuela) |
Recent FATF List Changes: 2025–2026
The FATF grey list changes regularly. Here are the most significant recent updates:
- February 2026 (added): Kuwait, Papua New Guinea
- June 2025 (added): Bolivia, British Virgin Islands
- October 2025 (removed): Burkina Faso, Mozambique, Nigeria, South Africa — all successfully improved their AML/CFT frameworks
- June 2025 (removed): Croatia, Mali, Tanzania
Consequences of FATF Blacklist and Grey List Status
Being listed by FATF — whether on the blacklist or the grey list — has serious financial consequences:
Consequences of FATF Blacklist Status
- FATF members are called upon to apply counter-measures — the most severe available tools
- Correspondent banking relationships become extremely difficult or impossible to maintain
- International payments and transfers are heavily scrutinized or blocked
- Investment flows dry up as institutional investors apply internal blacklist country exclusions
- Overlap with OFAC sanctions programs (Iran and North Korea are both OFAC and FATF blacklisted)
Consequences of FATF Grey List Status
- Banks and financial institutions must apply Enhanced Due Diligence (EDD) on all transactions involving grey-listed countries
- Increased compliance costs and transaction delays for businesses in or dealing with grey-listed countries
- Reputational damage and reduced investor confidence
- Potential de-risking by correspondent banks — reduction in banking services
- Pressure from international partners and multilateral organizations to implement reforms
FATF History and Background
The Financial Action Task Force was established in 1989 by the G7 Summit in Paris initially to examine and develop measures to combat money laundering. In 2001, after the September 11 attacks, FATF expanded its mandate to include terrorist financing. In 2012, it further expanded to cover the financing of proliferation of weapons of mass destruction. FATF’s 40 Recommendations are the internationally recognized standard for AML/CFT frameworks.
The original “blacklist” began in 2000 as the Non-Cooperative Countries and Territories (NCCT) list, targeting 15 jurisdictions including the Bahamas, Cayman Islands, and Russia. The modern blacklist and grey list structure evolved through multiple reforms between 2000 and 2012.
FATF and OFAC: How the Two Lists Interact
FATF lists and OFAC sanctions programs are separate but often overlapping. Countries on the FATF blacklist (Iran, North Korea, Myanmar) are also subject to comprehensive or targeted OFAC sanctions. For businesses operating internationally, understanding both frameworks is essential for comprehensive AML and sanctions compliance.
If your business operates in or with grey-listed or blacklisted jurisdictions, you need specialized legal guidance to navigate the complex web of FATF requirements, OFAC sanctions, and local regulatory obligations.
Need Help Navigating FATF and OFAC Compliance?
Our sanctions and AML lawyers specialize in compliance with FATF standards, OFAC regulations, and international sanctions frameworks. Whether you need EDD procedures, sanctions screening guidance, or representation in enforcement proceedings — we are ready to help. Free initial consultation.