The Financial Action Task Force (FATF) published its updated 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 protect the international financial system from money laundering, terrorist financing and proliferation financing risks. The statement continues to call for countermeasures for the Democratic People’s Republic of Korea (DPRK) and Iran, and maintains Myanmar under a call for enhanced due diligence. For DPRK, the FATF again called for robust implementation of targeted financial sanctions in line with United Nations Security Council resolutions and for countries to apply countermeasures, including terminating correspondent relationships with DPRK banks, closing any subsidiaries or branches of DPRK banks, 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 and complex ownership structures. For Iran, the FATF fully lifted the suspension of countermeasures, citing Iran’s failure to enact the Palermo and Terrorist Financing Conventions in line with FATF Standards, and confirmed Iran will remain subject to the call for action until its full action plan is completed. For Myanmar, the FATF maintained enhanced due diligence expectations for financial institutions, noted slow overall progress while pointing to recent progress on one proliferation-financing sanctions-related technical compliance item, and set out areas where further work is expected while cautioning that humanitarian assistance, legitimate non-profit activity and remittances should not be disrupted. The FATF indicated it will consider countermeasures for Myanmar if no further progress is made by June 2025, and it will decide next steps for Iran, including whether to suspend countermeasures, if Iran ratifies the Palermo and Terrorist Financing Conventions in line with FATF standards. In related materials, the FATF also issued an updated jurisdictions under increased monitoring statement, removing the Philippines from increased monitoring and adding Nepal and Lao PDR.
Financial Action Task Force 2025-02-21
Financial Action Task Force lifts the suspension of countermeasures on Iran and reiterates calls for action on DPRK and Myanmar
The Financial Action Task Force (FATF) updated its statement on high-risk jurisdictions, urging enhanced due diligence and countermeasures against money laundering and terrorist financing. The Democratic People’s Republic of Korea (DPRK) and Iran remain under countermeasures, with DPRK facing calls for robust financial sanctions and Iran subject to action until it completes its action plan. Myanmar is under enhanced due diligence, with potential countermeasures if progress stalls, while the Philippines was removed from increased monitoring, and Nepal and Lao PDR were added.