On February 26, 2025, FinCEN released an advisory on the FATF-identified jurisdictions with AML/CFT/CPF deficiencies. This advisory informs U.S. financial institutions about jurisdictions the Financial Action Task Force (FATF) has identified as having strategic deficiencies in their anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation (AML/CFT/CPF) regimes.
FATF, an intergovernmental body setting global AML/CFT/CPF standards, updates these lists to guide financial institutions in risk-based compliance. When FATF identifies jurisdictions with deficiencies, FinCEN relays this information to U.S. financial institutions to aid in risk assessment and compliance measures.
In its latest update, the FATF added Laos and Nepal to the list of Jurisdictions Under Increased Monitoring and removed the Philippines. The list of High-Risk Jurisdictions Subject to a Call for Action remains unchanged, with Iran, North Korea (DPRK), and Burma still subject to FATF’s highest level of scrutiny. Specifically, FATF continues to call for countermeasures against Iran and DPRK, while Burma remains subject to enhanced due diligence.
Financial institutions should consider these FATF designations when implementing their BSA/AML/CFT programs and risk-based due diligence procedures.
The FinCEN advisory can be found here.