Financial Action Task Force reaffirms call for countermeasures on DPRK and Iran and maintains enhanced due diligence for Myanmar

The Financial Action Task Force (FATF) updated its statement on high-risk jurisdictions subject to a call for action, reiterating that members and all jurisdictions should apply enhanced due diligence and, in the most serious cases, countermeasures to mitigate money laundering, terrorist financing and proliferation financing risks. The call for countermeasures remains in place for the Democratic People’s Republic of Korea (DPRK) and Iran, while Myanmar continues to be subject to enhanced due diligence measures proportionate to its risks. For the DPRK, the FATF repeated long-standing expectations to robustly implement targeted financial sanctions in line with United Nations Security Council resolutions and to apply countermeasures including terminating correspondent relationships with DPRK banks, closing any DPRK bank subsidiaries or branches, and limiting business relationships and financial transactions with DPRK persons. It highlighted increased DPRK connectivity to the international financial system as raising proliferation financing risks and said it will monitor compliance with targeted financial sanctions and countermeasure implementation. For Iran, the FATF noted continued failure to complete the action plan and assessed Iran’s reservations to the United Nations Convention against Transnational Organized Crime (Palermo) as overly broad and not aligned with FATF standards; it reiterated effective countermeasures, including restrictions on establishing branches, subsidiaries or representative offices involving Iranian financial institutions. For Myanmar, the FATF maintained its enhanced due diligence call, noted limited progress including on preserving the value of seized assets, and stressed that enhanced due diligence should not disrupt humanitarian assistance, legitimate non-profit organisation activity or remittances. The FATF said it will consider countermeasures for Myanmar if no further progress is made by February 2026. Iran remains subject to the call for action until the full action plan is completed, with next steps including possible suspension of countermeasures tied to ratification and implementation of the Palermo and Terrorist Financing Conventions in line with FATF standards.