Daily Compliance Brief — FATF Updates Grey List Following June 2026 Plenary

June 22, 2026

Signal

The Financial Action Task Force (FATF) announced the outcomes of its 17–19 June 2026 Plenary and updated its list of Jurisdictions under Increased Monitoring on 19 June 2026. According to the FATF Plenary outcomes statement, Bosnia and Herzegovina and Iraq were added to the FATF's monitoring list, while Algeria and Namibia were removed following successful completion of their action plans.

The FATF stated that Bosnia and Herzegovina and Iraq have committed to addressing strategic deficiencies in their anti-money laundering, counter-terrorist financing, and counter-proliferation financing frameworks under agreed action plans. The decision follows the FATF's periodic review of jurisdictions presenting elevated AML/CFT risks to the international financial system.

The development signals an immediate change in the external risk environment used by financial institutions when assessing geographic exposure, customer risk, correspondent banking relationships, and enhanced due diligence requirements.

Why it matters

Organizations may need to reassess country risk methodologies, customer risk assessments, and due diligence frameworks to determine whether exposure to Bosnia and Herzegovina or Iraq requires additional review or monitoring.

Monitoring frameworks may require updates to reflect revised jurisdictional risk ratings, particularly where geographic risk factors influence onboarding, transaction monitoring, sanctions screening, or escalation processes.

Documentation and oversight mechanisms should demonstrate that recent FATF monitoring-list changes have been evaluated appropriately and incorporated into relevant financial crime risk management and governance processes.