The Financial Action Task Force (FATF) updated its statement on high-risk jurisdictions with significant strategic deficiencies in anti-money laundering, counter-terrorist financing and counter-proliferation financing frameworks, calling on members and all jurisdictions to apply enhanced due diligence and, in the most serious cases, countermeasures. The statement continues to cover the Democratic People’s Republic of Korea (DPRK), Iran and Myanmar, and includes a decision to fully lift the suspension of countermeasures on Iran. For the DPRK, FATF reiterated the need 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 DPRK bank subsidiaries or branches, and limiting business relationships and financial transactions with DPRK persons. It flagged increased DPRK connectivity with the international financial system as raising proliferation financing risk and encouraged enhanced due diligence given the use of front companies, shell companies and opaque ownership structures. For Iran, FATF called for effective countermeasures in line with Recommendation 19, citing Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with FATF Standards, and noted that Iran will remain subject to the call for action until the full action plan is completed. For Myanmar, FATF maintained its call for enhanced due diligence proportionate to risk, including increased monitoring by financial institutions to identify unusual or suspicious activity, while stressing that humanitarian assistance, legitimate non-profit activity and remittances should not be disrupted. FATF said it will consider countermeasures for Myanmar if no further progress is made by October 2025. It also stated that if Iran ratifies the Palermo and Terrorist Financing Conventions in line with FATF standards, it will decide next steps including whether to suspend countermeasures, and that it will continue monitoring implementation of DPRK targeted financial sanctions and countermeasures.
Financial Action Task Force 2025-06-13
Financial Action Task Force lifts suspension and urges countermeasures on Iran while reaffirming DPRK countermeasures and Myanmar enhanced due diligence
The Financial Action Task Force (FATF) updated its statement on high-risk jurisdictions, urging enhanced due diligence and countermeasures for the Democratic People’s Republic of Korea (DPRK), Iran, and Myanmar. FATF emphasized robust implementation of financial sanctions against DPRK, effective countermeasures for Iran due to non-compliance with key conventions, and enhanced due diligence for Myanmar. It will reassess Iran and Myanmar's progress by October 2025 and continue monitoring DPRK.