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1. Shard Calculation

Query:

Response:

Calculated Shard: 13 (from laksa085)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa013.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://sumsub.com/blog/aml-high-risk-countries/\')), getAhrefsUnparsedNoserviceFromURL(\'https://sumsub.com/blog/aml-high-risk-countries/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/sumsub.com\/blog\/aml-high-risk-countries\/","crawl_time":1775514167,"first_indexed_time":1654258551,"http_code":200,"src_unparsed":"com,sumsub!\/blog\/aml-high-risk-countries\/ s443","src_root_hash":"10054746194069155613","history_drop_reason":null,"meta_title":"AML High-Risk Countries: FATF Grey List, Jurisdiction Risks, and Compliance Best Practices (2026)","meta_descriptions":["Countries deemed high-risk for money laundering pose serious risks to businesses. Learn how they're identified, the risks, & how to stay safe."],"attrs_boilerpipe_text":"Jan 06, 2026\n9 min read\nCountries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe.\nAnti-Money Laundering\/Counter-Terrorism Financing (AML\/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML\/CFT frameworks than others, as reflected in designations such as the FATF grey list.\nThe Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system. \nThe FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML\/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML\/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest\nFATF report\n.\nLet’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe.\nWhat are AML high-risk countries? \nHigh-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the\nFinancial Action Task Force (FATF)\n. \nHigh-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD).\nThere are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF\n“grey list” and “black list”\nare widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings.\nThe term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions.\nHigh-risk AML countries: What are the real risks?\nBusinesses that engage with customers in high-risk countries are at increased risk of issues, including:\nFacilitating financial crime.\nWhere a jurisdiction lacks a robust AML\/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds.\nBreaching international sanctions.\nIf a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions.\nReputational damage.\nPolitical issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm.\nCorrespondent banking AML risks\nEven if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with\ncorrespondent banks\nwith connections to such countries. \nIt is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’.\nCorrespondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime.\nFinancial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified.\nHow regulators classify high-risk jurisdictions\nDifferent regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes.\nHow the FATF high-risk countries classification works\nThe FATF looks at various\nfactors\nwhen deciding whether to review a country’s AML\/CTF risk. A review may be triggered if a country:\nDoes not participate in a\nFATF-style regional body (FSRB)\nIs nominated for review by a FATF member\nHas achieved a poor result on a\nmutual evaluation\n(i.e., an in-depth analysis of its AML\/CTF regime by another FATF member)\nDoes not facilitate the prompt publishing of the results of a mutual evaluation\nThe\nFATF review process\nis an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues. \nIf the deficiencies are serious enough, the country may be placed on the FATF\n“grey list”\n, indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out. \nHowever, if a country fails to engage with the FATF to resolve any failings in its AML\/CTF regime, then it could be placed on the FATF\n“black list”\n. This means the country is deemed to be especially high risk.\nHow the EU identifies high-risk AML countries\nThe EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following\nfour stages\n:\nPriority setting.\nCountries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre.\nAssessing.\nThe European Commission evaluates countries’ effectiveness in AML\/CTF based on their legal framework and how this is applied across\neight key areas\n. These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’. \nListing.\nAny countries deemed to be high risk are then placed on the\nEU’s high-risk countries list\n.\nFollow-up.\nListed countries are then continuously monitored for signs of any changes that could alter their risk profile.\nHow the UK determines which countries are high-risk\nThe UK closely follows the FATF AML lists when\npublishing advice\nto its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the\nMoney Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017\n(the “MLRs”).\nHow the US designates high-risk AML jurisdictions\nThe US\nFinancial Crimes Enforcement Network (FinCEN)\nalso follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict\ncompliance obligations\naround due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering.\nFATF black list and grey list explained\nThe FATF is an international body that identifies countries with strategic AML\/CFT shortcomings. It compiles multiple lists, such as the\nHigh-Risk Jurisdictions Subject to a Call for Action\nand\nJurisdictions under Increased Monitoring\n, which are updated three times a year. \nThe FATF divides countries with strategic shortcomings in their AML\/CTF regimes into two lists:\nHigh-risk Jurisdictions Subject to a Call for Action\n(“black list”) and\nJurisdictions Under Increased Monitoring\n(“grey list”).\nThe FATF “black list”: High-risk jurisdictions subject to a call for action\nWhen dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML\/TF risks. \nThe FATF “grey list”: Jurisdictions under increased monitoring\nWhen the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries.\nSuggested read:\nThe 10 Most Common AML Red Flags to Watch Out for in 2025\nHow the FATF high-risk countries lists are updated\nCountries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF\npublishes\nupdates on which countries are on its lists three times a year, in February, June, and October.\nAs\ncovered above\n, countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a\nFATF-style regional body (FSRB)\n, being nominated by a FATF member, doing poorly in a\nmutual evaluation\nby another FATF member, or not enabling the timely publication of the results of a mutual evaluation.\nAs part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list. \nIf a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML\/CTF regime. \nFATF grey list vs black list: A side-by-side comparison\nGrey list\nBlack list\nStatus of listed countries\nStrategic deficiencies in the AML\/CTF regime, but working to improve\nStrategic deficiencies in the AML\/CTF regime and not working to improve\nLevel of AML\/CTF risk\nElevated \/ High\nHigh \/ Severe\nEngagement with FATF\nActively working with FATF to resolve issues\nNot cooperating with FATF\nAML\/CTF requirements for businesses\nEnhanced Due Diligence for customers in listed countries\nCountermeasures, including financial sanctions, may be implemented\nImpact for the listed countries includes:\nLess attractive for international investment, additional costs for rectifying issues, and potential for\nfinancial exclusion\nof citizens\nFinancial isolation, high risk of financial exclusion for citizens\nSuggested read:\nUnderstanding the FATF Black and Grey Lists in 2024\nWhat are the high-risk jurisdictions in\n2026\n?\nThe following countries are currently\n‘blacklisted’\nby the FATF:\nDemocratic People’s Republic of Korea\nIran\nMyanmar\nThe following countries are\n‘grey listed’\nby the FATF:\nAlgeria\nAngola\nBolivia\nBritish Virgin Islands\nBulgaria\nCameroon\nCôte d’Ivoire\nDemocratic Republic of Congo\nHaiti\nKenya\nKuwait\nLao People’s Democratic Republic\nLebanon\nMonaco\nNamibia\nNepal\nPapua New Guinea\nSouth Sudan\nSyria\nVenezuela\nVietnam\nYemen\nBurkina Faso, Mozambique, Nigeria, and South Africa have all recently been\nremoved\nfrom the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been\nadded to the list\nin 2026 for their deficiencies in AML\/CFT frameworks and related risks.\nAll in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions.\nHow to identify exposure to high-risk jurisdictions\nBusinesses can identify their AML risk exposure to high-risk jurisdictions by following these steps:\nStaying up to date on the latest lists of high-risk countries\n: e.g., the FATF lists or regional and national lists.\nCarrying out a business-wide review\n: to pick up any potential points of interaction with high-risk countries.\nTaking a risk-based approach\n: evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk.\n Performing Enhanced Due Diligence\n: on any customers in a high-risk jurisdiction or with potential links to one.\nChecking partner businesses for connections to high-risk countries\n: e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction.\nAML compliance requirements for businesses\nRegulated financial institutions are legally required to follow international and local AML\/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed.\nIt’s necessary to apply\nEnhanced Due Diligence (EDD)\nmeasures in business relationships and transactions involving high-risk third countries for AML compliance purposes. \nEnhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds.\nThis requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary.\nWhen companies deal with customers from high-risk third countries, they should be aware that:\nHigh-risk countries may be subject to financial sanctions, which require companies to take additional measures\nRegulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country\nHowever, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention.\nAlso, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by:\nApplying a risk-based approach to determine whether\nEnhanced Due Diligence\nis required\nScreening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources\nSuggested read:\nUnderstanding the UN Sanctions\nHow to stay updated on FATF lists\nThe FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their\npublications page\nby checking the filter for ‘High-risk and other monitored jurisdictions’. \nAutomating AML screening and monitoring\nAML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions.\nAML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors.\nOngoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries.\nRisk management for FATF-listed countries\nWhen dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully.\nSumsub’s automated\nKnow Your Customer\n(KYC) and\nTransaction Monitoring\nsolutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations.\nF\nAQ\nWhat are AML high-risk countries?\nAML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML\/CTF regimes.\nWhat is the FATF grey list?\nThe FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML\/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings.\nWhat is the difference between the FATF grey list and black list?\nThe FATF grey and black lists both set out countries with significant problems with their AML\/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF.\nWhy are some countries considered high risk for AML?\nCountries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime.\nWhat countries are black listed for money laundering?\nThe FATF’s black list includes:\nDemocratic People’s Republic of Korea\nIran\nMyanmar\nWhat countries are low risk for AML?\nAny country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct\nrisk assessments\n.\nHow can businesses comply with AML regulations in high-risk countries?\nBusinesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries.\nHow often does the FATF update its high-risk list?\nFATF continuously reviews countries for inclusion in or removal from its high-risk lists,\npublishing\nupdates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML\/CTF regime.\nWhat are high-risk industries in terms of AML?\nBased on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance:\nBanking and financial services\nCasinos and gambling\nPrecious metals and stones dealers\nReal estate\nVirtual assets and cryptocurrencies\nMoney services businesses, including currency exchanges and money transfer services\nLegal and accounting services\nArt and antiquities dealers\nNon-profit organizations\nHigh-value goods dealers","attrs_markdown":"![Cookie dog illustration](https:\/\/sumsub.com\/_next\/static\/media\/IconCookieDog.cbb41e16.svg)\n\nCookie Break Time\n\nWe use cookies to enhance the functionality of our website and its subdomains, and to personalize content and ads, **always prioritizing your privacy and data security**. You have the control to enable or disable optional cookies as you wish. For a deeper dive into our cookie usage, do check out our [Cookie Policy](https:\/\/sumsub.com\/cookie-policy\/).\n\nManage cookies\n\nAccept all cookies\n\nSkip to content\n\n[Expert-led anti-fraud media](https:\/\/sumsub.com\/media\/)\n\nNews\n\nSpotlight\n\nKnowledge hub\n\nGuides and Reports\n\n- Jan 06, 2026\n- 9 min read\n\n# AML High-Risk Countries: FATF Grey List, Jurisdiction Risks, and Compliance Best Practices (2026)\nCountries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe.\n\n[![Ed Prior](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F10%2Fed-prior.jpeg&w=96&q=75)Ed Prior Content Writer](https:\/\/sumsub.com\/blog\/experts\/ed-prior\/)\n\n![](https:\/\/sumsub.com\/wp\/wp-content\/uploads\/2024\/08\/aml-high-risk-countries_-fatf-grey-list-jurisdiction-risks-and-compliance-best-practices-2026.jpg)\n\nAnti-Money Laundering\/Counter-Terrorism Financing (AML\/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML\/CFT frameworks than others, as reflected in designations such as the FATF grey list.\n\nThe Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system.\n\nThe FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML\/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML\/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest [FATF report](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html).\n\nLet’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe.\n\n## **What are AML high-risk countries?**\nHigh-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the [Financial Action Task Force (FATF)](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html#:~:text=High-risk%20jurisdictions%20have%20significant%20strategic%20deficiencies%20in%20their%20regimes%20to%20counter%20money%20laundering%2C%20terrorist%20financing%2C%20and%20financing%20of%20proliferation.).\n\nHigh-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD).\n\nThere are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF [“grey list” and “black list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html) are widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings.\n\nThe term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions.\n\n## **High-risk AML countries: What are the real risks?**\nBusinesses that engage with customers in high-risk countries are at increased risk of issues, including:\n\n- **Facilitating financial crime.** Where a jurisdiction lacks a robust AML\/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds.\n- **Breaching international sanctions.** If a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions.\n- **Reputational damage.** Political issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm.\n### **Correspondent banking AML risks**\nEven if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with [correspondent banks](https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/Correspondent-banking-services.html) with connections to such countries.\n\nIt is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’.\n\nCorrespondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime.\n\nFinancial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified.\n\n## **How regulators classify high-risk jurisdictions**\nDifferent regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes.\n\n### **How the FATF high-risk countries classification works**\nThe FATF looks at various [factors](https:\/\/www.fatf-gafi.org\/en\/topics\/high-risk-and-other-monitored-jurisdictions.html#:~:text=The%20FATF%20reviews%20jurisdictions%20based%20on%20threats%2C%20vulnerabilities%2C%20or%20particular%20risks%20arising%20from%20the%20jurisdiction.%20Specifically%2C%20a%20jurisdiction%20will%20be%20reviewed%20when%3A) when deciding whether to review a country’s AML\/CTF risk. A review may be triggered if a country:\n\n- Does not participate in a [FATF-style regional body (FSRB)](https:\/\/www.fatf-gafi.org\/en\/countries\/global-network.html)\n- Is nominated for review by a FATF member\n- Has achieved a poor result on a [mutual evaluation](https:\/\/www.fatf-gafi.org\/en\/topics\/mutual-evaluations.html) (i.e., an in-depth analysis of its AML\/CTF regime by another FATF member)\n- Does not facilitate the prompt publishing of the results of a mutual evaluation\n\nThe [FATF review process](https:\/\/www.fatf-gafi.org\/en\/topics\/high-risk-and-other-monitored-jurisdictions.html#:~:text=During%20the%20review,remaining%20strategic%20deficiencies.) is an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues.\n\nIf the deficiencies are serious enough, the country may be placed on the FATF [“grey list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html#:~:text=Jurisdictions%20under%20Increased%20Monitoring%20\\(i.e.%20%22grey%20list%22\\)), indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out.\n\nHowever, if a country fails to engage with the FATF to resolve any failings in its AML\/CTF regime, then it could be placed on the FATF [“black list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html#:~:text=High-Risk%20Jurisdictions%20subject%20to%20a%20Call%20for%20Action%20\\(i.e.%20%22black%20list%22\\)). This means the country is deemed to be especially high risk.\n\n### **How the EU identifies high-risk AML countries**\nThe EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following [four stages](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=Promoting%20sustainable%20development-,What%20are%20the%20steps,-The%20listing%20process):\n\n1. **Priority setting.** Countries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre.\n2. **Assessing.** The European Commission evaluates countries’ effectiveness in AML\/CTF based on their legal framework and how this is applied across [eight key areas](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level\/eu-methodology-identification-high-risk-third-countries_en). These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’.\n3. **Listing.** Any countries deemed to be high risk are then placed on the [EU’s high-risk countries list](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=of%20the%20Directive.-,Latest%20version%20of%20the%20list%20of%20high-risk%20third%20countries,-On%2010%20June).\n4. **Follow-up.** Listed countries are then continuously monitored for signs of any changes that could alter their risk profile.\n### **How the UK determines which countries are high-risk**\nThe UK closely follows the FATF AML lists when [publishing advice](https:\/\/www.gov.uk\/government\/publications\/money-laundering-advisory-notice-high-risk-third-countries--2\/money-laundering-advisory-notice-high-risk-third-countries--2) to its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017](https:\/\/www.legislation.gov.uk\/uksi\/2017\/692\/contents) (the “MLRs”).\n\n### **How the US designates high-risk AML jurisdictions**\nThe US [Financial Crimes Enforcement Network (FinCEN)](https:\/\/www.fincen.gov\/news\/news-releases\/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3) also follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict [compliance obligations](https:\/\/www.fincen.gov\/news\/news-releases\/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3#:~:text=With%20respect%20to,for%20an%20FFI.) around due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering.\n\n## **FATF black list and grey list explained**\nThe FATF is an international body that identifies countries with strategic AML\/CFT shortcomings. It compiles multiple lists, such as the [High-Risk Jurisdictions Subject to a Call for Action](https:\/\/www.fatf-gafi.org\/publications\/high-risk-and-other-monitored-jurisdictions\/documents\/call-for-action-march-2022.html) and [Jurisdictions under Increased Monitoring](https:\/\/www.fatf-gafi.org\/publications\/high-risk-and-other-monitored-jurisdictions\/documents\/increased-monitoring-march-2022.html), which are updated three times a year.\n\nThe FATF divides countries with strategic shortcomings in their AML\/CTF regimes into two lists: [High-risk Jurisdictions Subject to a Call for Action](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html) (“black list”) and [Jurisdictions Under Increased Monitoring](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html) (“grey list”).\n\n### **The FATF “black list”: High-risk jurisdictions subject to a call for action**\nWhen dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML\/TF risks.\n\n### **The FATF “grey list”: Jurisdictions under increased monitoring**\nWhen the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries.\n\nSuggested read: [The 10 Most Common AML Red Flags to Watch Out for in 2025](https:\/\/sumsub.com\/blog\/the-10-most-common-aml-red-flags-complete-guide\/)\n\n### **How the FATF high-risk countries lists are updated**\nCountries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF [publishes](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates on which countries are on its lists three times a year, in February, June, and October.\n\nAs [covered above](https:\/\/sumsub.com\/blog\/aml-high-risk-countries\/#classification), countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a [FATF-style regional body (FSRB)](https:\/\/www.fatf-gafi.org\/en\/countries\/global-network.html), being nominated by a FATF member, doing poorly in a [mutual evaluation](https:\/\/www.fatf-gafi.org\/en\/topics\/mutual-evaluations.html) by another FATF member, or not enabling the timely publication of the results of a mutual evaluation.\n\nAs part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list.\n\nIf a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML\/CTF regime.\n\n## **FATF grey list vs black list: A side-by-side comparison**\n|   |   |   |\n|---|---|---|\n|   | **Grey list** | **Black list** |\n| **Status of listed countries** | Strategic deficiencies in the AML\/CTF regime, but working to improve | Strategic deficiencies in the AML\/CTF regime and not working to improve |\n| **Level of AML\/CTF risk** | Elevated \/ High | High \/ Severe |\n| **Engagement with FATF** | Actively working with FATF to resolve issues | Not cooperating with FATF |\n| **AML\/CTF requirements for businesses** | Enhanced Due Diligence for customers in listed countries | Countermeasures, including financial sanctions, may be implemented |\n| **Impact for the listed countries includes:** | Less attractive for international investment, additional costs for rectifying issues, and potential for [financial exclusion](https:\/\/www.fca.org.uk\/publication\/external-research\/exploring-financial-exclusion.pdf) of citizens | Financial isolation, high risk of financial exclusion for citizens |\n\nSuggested read: [Understanding the FATF Black and Grey Lists in 2024](https:\/\/sumsub.com\/blog\/fatf-black-grey-lists\/)\n\n## **What are the high-risk jurisdictions in** **2026****?**\nThe following countries are currently [‘blacklisted’](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html) by the FATF:\n\n- Democratic People’s Republic of Korea\n- Iran\n- Myanmar\n\nThe following countries are [‘grey listed’](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html) by the FATF:\n\n- Algeria\n- Angola\n- Bolivia\n- British Virgin Islands\n- Bulgaria\n- Cameroon\n- Côte d’Ivoire\n- Democratic Republic of Congo\n- Haiti\n- Kenya\n- Kuwait\n- Lao People’s Democratic Republic\n- Lebanon\n- Monaco\n- Namibia\n- Nepal\n- Papua New Guinea\n- South Sudan\n- Syria\n- Venezuela\n- Vietnam\n- Yemen\n\nBurkina Faso, Mozambique, Nigeria, and South Africa have all recently been [removed](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html#:~:text=JURISDICTIONS%20NO%20LONGER%20SUBJECT%20TO%20INCREASED%20MONITORING%20BY%20THE%20FATF) from the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been [added to the list](https:\/\/sumsub.com\/media\/news\/fatf-adds-kuwait-and-papua-new-guinea-to-grey-list\/) in 2026 for their deficiencies in AML\/CFT frameworks and related risks.\n\nAll in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions.\n\n## **How to identify exposure to high-risk jurisdictions**\nBusinesses can identify their AML risk exposure to high-risk jurisdictions by following these steps:\n\n- **Staying up to date on the latest lists of high-risk countries**: e.g., the FATF lists or regional and national lists.\n- **Carrying out a business-wide review**: to pick up any potential points of interaction with high-risk countries.\n- **Taking a risk-based approach**: evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk.\n- **Performing Enhanced Due Diligence**: on any customers in a high-risk jurisdiction or with potential links to one.\n- **Checking partner businesses for connections to high-risk countries**: e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction.\n## **AML compliance requirements for businesses**\nRegulated financial institutions are legally required to follow international and local AML\/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed.\n\nIt’s necessary to apply [Enhanced Due Diligence (EDD)](https:\/\/sumsub.com\/blog\/enhanced-due-diligence\/) measures in business relationships and transactions involving high-risk third countries for AML compliance purposes.\n\n*Enhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds.*\n\nThis requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary.\n\nWhen companies deal with customers from high-risk third countries, they should be aware that:\n\n- High-risk countries may be subject to financial sanctions, which require companies to take additional measures\n- Regulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country\n\nHowever, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention.\n\nAlso, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by:\n\n- Applying a risk-based approach to determine whether [Enhanced Due Diligence](https:\/\/sumsub.com\/blog\/enhanced-due-diligence\/) is required\n- Screening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources\n\nSuggested read: [Understanding the UN Sanctions](https:\/\/sumsub.com\/blog\/un-sanctions-list\/)\n\n## **How to stay updated on FATF lists**\nThe FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their [publications page](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) by checking the filter for ‘High-risk and other monitored jurisdictions’.\n\n## **Automating AML screening and monitoring**\nAML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions.\n\nAML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors.\n\nOngoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries.\n\n## **Risk management for FATF-listed countries**\nWhen dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully.\n\nSumsub’s automated [Know Your Customer](https:\/\/sumsub.com\/kyc-compliance\/) (KYC) and [Transaction Monitoring](https:\/\/sumsub.com\/aml-transaction-monitoring\/) solutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations.\n\n## **F**AQ\n- ### What are AML high-risk countries?\n  AML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML\/CTF regimes.\n- ### What is the FATF grey list?\n  The FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML\/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings.\n- ### What is the difference between the FATF grey list and black list?\n  The FATF grey and black lists both set out countries with significant problems with their AML\/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF.\n- ### Why are some countries considered high risk for AML?\n  Countries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime.\n- ### What countries are black listed for money laundering?\n  The FATF’s black list includes:\n  \n  - Democratic People’s Republic of Korea\n  - Iran\n  - Myanmar\n- ### What countries are low risk for AML?\n  Any country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct [risk assessments](https:\/\/sumsub.com\/blog\/kyc-risk-rating\/).\n- ### How can businesses comply with AML regulations in high-risk countries?\n  Businesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries.\n- ### How often does the FATF update its high-risk list?\n  FATF continuously reviews countries for inclusion in or removal from its high-risk lists, [publishing](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML\/CTF regime.\n- ### What are high-risk industries in terms of AML?\n  Based on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance:\n  \n  - Banking and financial services\n  - Casinos and gambling\n  - Precious metals and stones dealers\n  - Real estate\n  - Virtual assets and cryptocurrencies\n  - Money services businesses, including currency exchanges and money transfer services\n  - Legal and accounting services\n  - Art and antiquities dealers\n  - Non-profit organizations\n  - High-value goods dealers\n\nShare this article\n\n[Advanced](https:\/\/sumsub.com\/blog\/tags\/advanced\/)[Article](https:\/\/sumsub.com\/blog\/tags\/article\/)[Crypto](https:\/\/sumsub.com\/blog\/tags\/crypto\/)[EDD](https:\/\/sumsub.com\/blog\/tags\/edd\/)[FATF](https:\/\/sumsub.com\/blog\/tags\/fatf\/)[Financial Institutions](https:\/\/sumsub.com\/blog\/tags\/financial-institutions\/)[Fintech](https:\/\/sumsub.com\/blog\/tags\/fintech\/)[Global](https:\/\/sumsub.com\/blog\/tags\/global\/)[KYC\/AML](https:\/\/sumsub.com\/blog\/tags\/kyc-aml\/)[Money Laundering](https:\/\/sumsub.com\/blog\/tags\/money-laundering\/)\n\n### Relevant articles\n- Beginner\n- Intermediate\n- Advanced\n\n[Article 1 week ago 12 min read Top Crypto-Friendly Countries in 2026 Explore the best countries for crypto businesses in 2026 and learn where regulations and incentives favor growth. ![Top Crypto-Friendly Countries in 2026](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F02%2Fthe-top-10-crypto-friendly-countries-2025-2.png&w=1024&q=75) ![Ed Prior](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F10%2Fed-prior.jpeg&w=96&q=75) Ed Prior Content Writer ![Alisa Abramova](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2023%2F04%2Ffile-00029-%E2%80%94-kopiya.jpg&w=96&q=75) Alisa Abramova Senior Content Manager](https:\/\/sumsub.com\/blog\/crypto-friendly-countries\/)\n\n[Article 1 week ago 8 min read Fraud Prevention for Hospitality Leaders: Tackling Hotel Fraud in 2026 Hospitality fraud trends are evolving. Learn the threats within the hospitality sector today and what can help stop scams, chargeback abuse, and loya… ![Fraud Prevention for Hospitality Leaders: Tackling Hotel Fraud in 2026](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2026%2F03%2Ffraud-prevention-for-hospitality-leaders_-tackling-hotel-fraud-in-2026-1.png&w=1024&q=75) ![Luke Owain Boult](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F06%2Fluke-owain-boult.png&w=96&q=75) Luke Owain Boult Content Writer](https:\/\/sumsub.com\/blog\/hotel-fraud-prevention\/)\n\n[Article 1 week ago 14 min read Card Cloning Fraud in 2026: What It Is & How to Prevent It The answers to all your questions about card cloning, what businesses can do to prevent it, and how consumers can stay safe. ![Card Cloning Fraud in 2026: What It Is & How to Prevent It](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F03%2Fcover_card-cloning-fraud-in-2026-1.png&w=1024&q=75) ![Ed Prior](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F10%2Fed-prior.jpeg&w=96&q=75) Ed Prior Content Writer ![Luke Owain Boult](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F06%2Fluke-owain-boult.png&w=96&q=75) Luke Owain Boult Content Writer](https:\/\/sumsub.com\/blog\/card-cloning\/)\n\n[Article 2 weeks ago 3 min read Fraud of the Month: Crypto Fraud Takes Center Stage in February 2026 Discover which fraud dominated February 2026, the news that made headlines, and which investigations took place in this fraud news article. ![Fraud of the Month: Crypto Fraud Takes Center Stage in February 2026](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2026%2F03%2Ffraud-of-the-month_feb-1.png&w=1024&q=75) ![Tijana Stankovic](https:\/\/sumsub.com\/_next\/image\/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F06%2Ftijana-stankovic.png&w=96&q=75) Tijana Stankovic Junior Content Manager](https:\/\/sumsub.com\/blog\/fraud-of-the-month-february-2026\/)\n\n## What is Sumsub anyway?\nNot everyone loves compliance—but we do. 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All liability, whether direct, indirect, consequential, or otherwise, for any loss, damage, or inconvenience arising from the use of, or reliance on, any information contained on this website or any linked resources is hereby disclaimed.\n\n### Subscribe to  The Sumsuber\nCompliance tips delivered right to your inbox","attrs_readable_markdown":"- Jan 06, 2026\n- 9 min read\n\nCountries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe.\n\n![](https:\/\/sumsub.com\/wp\/wp-content\/uploads\/2024\/08\/aml-high-risk-countries_-fatf-grey-list-jurisdiction-risks-and-compliance-best-practices-2026.jpg)\n\nAnti-Money Laundering\/Counter-Terrorism Financing (AML\/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML\/CFT frameworks than others, as reflected in designations such as the FATF grey list.\n\nThe Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system.\n\nThe FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML\/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML\/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest [FATF report](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html).\n\nLet’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe.\n\n## **What are AML high-risk countries?**\nHigh-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the [Financial Action Task Force (FATF)](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html#:~:text=High-risk%20jurisdictions%20have%20significant%20strategic%20deficiencies%20in%20their%20regimes%20to%20counter%20money%20laundering%2C%20terrorist%20financing%2C%20and%20financing%20of%20proliferation.).\n\nHigh-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD).\n\nThere are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF [“grey list” and “black list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html) are widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings.\n\nThe term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions.\n\n## **High-risk AML countries: What are the real risks?**\nBusinesses that engage with customers in high-risk countries are at increased risk of issues, including:\n\n- **Facilitating financial crime.** Where a jurisdiction lacks a robust AML\/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds.\n- **Breaching international sanctions.** If a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions.\n- **Reputational damage.** Political issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm.\n### **Correspondent banking AML risks**\nEven if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with [correspondent banks](https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/Correspondent-banking-services.html) with connections to such countries.\n\nIt is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’.\n\nCorrespondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime.\n\nFinancial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified.\n\n## **How regulators classify high-risk jurisdictions**\nDifferent regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes.\n\n### **How the FATF high-risk countries classification works**\nThe FATF looks at various [factors](https:\/\/www.fatf-gafi.org\/en\/topics\/high-risk-and-other-monitored-jurisdictions.html#:~:text=The%20FATF%20reviews%20jurisdictions%20based%20on%20threats%2C%20vulnerabilities%2C%20or%20particular%20risks%20arising%20from%20the%20jurisdiction.%20Specifically%2C%20a%20jurisdiction%20will%20be%20reviewed%20when%3A) when deciding whether to review a country’s AML\/CTF risk. A review may be triggered if a country:\n\n- Does not participate in a [FATF-style regional body (FSRB)](https:\/\/www.fatf-gafi.org\/en\/countries\/global-network.html)\n- Is nominated for review by a FATF member\n- Has achieved a poor result on a [mutual evaluation](https:\/\/www.fatf-gafi.org\/en\/topics\/mutual-evaluations.html) (i.e., an in-depth analysis of its AML\/CTF regime by another FATF member)\n- Does not facilitate the prompt publishing of the results of a mutual evaluation\n\nThe [FATF review process](https:\/\/www.fatf-gafi.org\/en\/topics\/high-risk-and-other-monitored-jurisdictions.html#:~:text=During%20the%20review,remaining%20strategic%20deficiencies.) is an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues.\n\nIf the deficiencies are serious enough, the country may be placed on the FATF [“grey list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html#:~:text=Jurisdictions%20under%20Increased%20Monitoring%20\\(i.e.%20%22grey%20list%22\\)), indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out.\n\nHowever, if a country fails to engage with the FATF to resolve any failings in its AML\/CTF regime, then it could be placed on the FATF [“black list”](https:\/\/www.fatf-gafi.org\/en\/countries\/black-and-grey-lists.html#:~:text=High-Risk%20Jurisdictions%20subject%20to%20a%20Call%20for%20Action%20\\(i.e.%20%22black%20list%22\\)). This means the country is deemed to be especially high risk.\n\n### **How the EU identifies high-risk AML countries**\nThe EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following [four stages](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=Promoting%20sustainable%20development-,What%20are%20the%20steps,-The%20listing%20process):\n\n1. **Priority setting.** Countries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre.\n2. **Assessing.** The European Commission evaluates countries’ effectiveness in AML\/CTF based on their legal framework and how this is applied across [eight key areas](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level\/eu-methodology-identification-high-risk-third-countries_en). These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’.\n3. **Listing.** Any countries deemed to be high risk are then placed on the [EU’s high-risk countries list](https:\/\/finance.ec.europa.eu\/financial-crime\/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=of%20the%20Directive.-,Latest%20version%20of%20the%20list%20of%20high-risk%20third%20countries,-On%2010%20June).\n4. **Follow-up.** Listed countries are then continuously monitored for signs of any changes that could alter their risk profile.\n### **How the UK determines which countries are high-risk**\nThe UK closely follows the FATF AML lists when [publishing advice](https:\/\/www.gov.uk\/government\/publications\/money-laundering-advisory-notice-high-risk-third-countries--2\/money-laundering-advisory-notice-high-risk-third-countries--2) to its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017](https:\/\/www.legislation.gov.uk\/uksi\/2017\/692\/contents) (the “MLRs”).\n\n### **How the US designates high-risk AML jurisdictions**\nThe US [Financial Crimes Enforcement Network (FinCEN)](https:\/\/www.fincen.gov\/news\/news-releases\/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3) also follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict [compliance obligations](https:\/\/www.fincen.gov\/news\/news-releases\/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3#:~:text=With%20respect%20to,for%20an%20FFI.) around due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering.\n\n## **FATF black list and grey list explained**\nThe FATF is an international body that identifies countries with strategic AML\/CFT shortcomings. It compiles multiple lists, such as the [High-Risk Jurisdictions Subject to a Call for Action](https:\/\/www.fatf-gafi.org\/publications\/high-risk-and-other-monitored-jurisdictions\/documents\/call-for-action-march-2022.html) and [Jurisdictions under Increased Monitoring](https:\/\/www.fatf-gafi.org\/publications\/high-risk-and-other-monitored-jurisdictions\/documents\/increased-monitoring-march-2022.html), which are updated three times a year.\n\nThe FATF divides countries with strategic shortcomings in their AML\/CTF regimes into two lists: [High-risk Jurisdictions Subject to a Call for Action](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html) (“black list”) and [Jurisdictions Under Increased Monitoring](https:\/\/www.fatf-gafi.org\/content\/fatf-gafi\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html) (“grey list”).\n\n### **The FATF “black list”: High-risk jurisdictions subject to a call for action**\nWhen dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML\/TF risks.\n\n### **The FATF “grey list”: Jurisdictions under increased monitoring**\nWhen the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries.\n\nSuggested read: [The 10 Most Common AML Red Flags to Watch Out for in 2025](https:\/\/sumsub.com\/blog\/the-10-most-common-aml-red-flags-complete-guide\/)\n\n### **How the FATF high-risk countries lists are updated**\nCountries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF [publishes](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates on which countries are on its lists three times a year, in February, June, and October.\n\nAs [covered above](https:\/\/sumsub.com\/blog\/aml-high-risk-countries\/#classification), countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a [FATF-style regional body (FSRB)](https:\/\/www.fatf-gafi.org\/en\/countries\/global-network.html), being nominated by a FATF member, doing poorly in a [mutual evaluation](https:\/\/www.fatf-gafi.org\/en\/topics\/mutual-evaluations.html) by another FATF member, or not enabling the timely publication of the results of a mutual evaluation.\n\nAs part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list.\n\nIf a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML\/CTF regime.\n\n## **FATF grey list vs black list: A side-by-side comparison**\n|   |   |   |\n|---|---|---|\n|   | **Grey list** | **Black list** |\n| **Status of listed countries** | Strategic deficiencies in the AML\/CTF regime, but working to improve | Strategic deficiencies in the AML\/CTF regime and not working to improve |\n| **Level of AML\/CTF risk** | Elevated \/ High | High \/ Severe |\n| **Engagement with FATF** | Actively working with FATF to resolve issues | Not cooperating with FATF |\n| **AML\/CTF requirements for businesses** | Enhanced Due Diligence for customers in listed countries | Countermeasures, including financial sanctions, may be implemented |\n| **Impact for the listed countries includes:** | Less attractive for international investment, additional costs for rectifying issues, and potential for [financial exclusion](https:\/\/www.fca.org.uk\/publication\/external-research\/exploring-financial-exclusion.pdf) of citizens | Financial isolation, high risk of financial exclusion for citizens |\n\nSuggested read: [Understanding the FATF Black and Grey Lists in 2024](https:\/\/sumsub.com\/blog\/fatf-black-grey-lists\/)\n\n## **What are the high-risk jurisdictions in** **2026****?**\nThe following countries are currently [‘blacklisted’](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/Call-for-action-october-2025.html) by the FATF:\n\n- Democratic People’s Republic of Korea\n- Iran\n- Myanmar\n\nThe following countries are [‘grey listed’](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html) by the FATF:\n\n- Algeria\n- Angola\n- Bolivia\n- British Virgin Islands\n- Bulgaria\n- Cameroon\n- Côte d’Ivoire\n- Democratic Republic of Congo\n- Haiti\n- Kenya\n- Kuwait\n- Lao People’s Democratic Republic\n- Lebanon\n- Monaco\n- Namibia\n- Nepal\n- Papua New Guinea\n- South Sudan\n- Syria\n- Venezuela\n- Vietnam\n- Yemen\n\nBurkina Faso, Mozambique, Nigeria, and South Africa have all recently been [removed](https:\/\/www.fatf-gafi.org\/en\/publications\/High-risk-and-other-monitored-jurisdictions\/increased-monitoring-october-2025.html#:~:text=JURISDICTIONS%20NO%20LONGER%20SUBJECT%20TO%20INCREASED%20MONITORING%20BY%20THE%20FATF) from the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been [added to the list](https:\/\/sumsub.com\/media\/news\/fatf-adds-kuwait-and-papua-new-guinea-to-grey-list\/) in 2026 for their deficiencies in AML\/CFT frameworks and related risks.\n\nAll in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions.\n\n## **How to identify exposure to high-risk jurisdictions**\nBusinesses can identify their AML risk exposure to high-risk jurisdictions by following these steps:\n\n- **Staying up to date on the latest lists of high-risk countries**: e.g., the FATF lists or regional and national lists.\n- **Carrying out a business-wide review**: to pick up any potential points of interaction with high-risk countries.\n- **Taking a risk-based approach**: evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk.\n- **Performing Enhanced Due Diligence**: on any customers in a high-risk jurisdiction or with potential links to one.\n- **Checking partner businesses for connections to high-risk countries**: e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction.\n## **AML compliance requirements for businesses**\nRegulated financial institutions are legally required to follow international and local AML\/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed.\n\nIt’s necessary to apply [Enhanced Due Diligence (EDD)](https:\/\/sumsub.com\/blog\/enhanced-due-diligence\/) measures in business relationships and transactions involving high-risk third countries for AML compliance purposes.\n\n*Enhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds.*\n\nThis requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary.\n\nWhen companies deal with customers from high-risk third countries, they should be aware that:\n\n- High-risk countries may be subject to financial sanctions, which require companies to take additional measures\n- Regulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country\n\nHowever, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention.\n\nAlso, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by:\n\n- Applying a risk-based approach to determine whether [Enhanced Due Diligence](https:\/\/sumsub.com\/blog\/enhanced-due-diligence\/) is required\n- Screening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources\n\nSuggested read: [Understanding the UN Sanctions](https:\/\/sumsub.com\/blog\/un-sanctions-list\/)\n\n## **How to stay updated on FATF lists**\nThe FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their [publications page](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) by checking the filter for ‘High-risk and other monitored jurisdictions’.\n\n## **Automating AML screening and monitoring**\nAML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions.\n\nAML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors.\n\nOngoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries.\n\n## **Risk management for FATF-listed countries**\nWhen dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully.\n\nSumsub’s automated [Know Your Customer](https:\/\/sumsub.com\/kyc-compliance\/) (KYC) and [Transaction Monitoring](https:\/\/sumsub.com\/aml-transaction-monitoring\/) solutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations.\n\n## **F**AQ\n- ### What are AML high-risk countries?\n  AML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML\/CTF regimes.\n- ### What is the FATF grey list?\n  The FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML\/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings.\n- ### What is the difference between the FATF grey list and black list?\n  The FATF grey and black lists both set out countries with significant problems with their AML\/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF.\n- ### Why are some countries considered high risk for AML?\n  Countries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime.\n- ### What countries are black listed for money laundering?\n  The FATF’s black list includes:\n  \n  - Democratic People’s Republic of Korea\n  - Iran\n  - Myanmar\n- ### What countries are low risk for AML?\n  Any country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct [risk assessments](https:\/\/sumsub.com\/blog\/kyc-risk-rating\/).\n- ### How can businesses comply with AML regulations in high-risk countries?\n  Businesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries.\n- ### How often does the FATF update its high-risk list?\n  FATF continuously reviews countries for inclusion in or removal from its high-risk lists, [publishing](https:\/\/www.fatf-gafi.org\/en\/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML\/CTF regime.\n- ### What are high-risk industries in terms of AML?\n  Based on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance:\n  \n  - Banking and financial services\n  - Casinos and gambling\n  - Precious metals and stones dealers\n  - Real estate\n  - Virtual assets and cryptocurrencies\n  - Money services businesses, including currency exchanges and money transfer services\n  - Legal and accounting services\n  - Art and antiquities dealers\n  - Non-profit organizations\n  - High-value goods dealers","meta_canonical":null}

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Boilerpipe Text	Jan 06, 2026 9 min read Countries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe. Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML/CFT frameworks than others, as reflected in designations such as the FATF grey list. The Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system. The FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest FATF report . Let’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe. What are AML high-risk countries? High-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the Financial Action Task Force (FATF) . High-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD). There are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF “grey list” and “black list” are widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings. The term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions. High-risk AML countries: What are the real risks? Businesses that engage with customers in high-risk countries are at increased risk of issues, including: Facilitating financial crime. Where a jurisdiction lacks a robust AML/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds. Breaching international sanctions. If a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions. Reputational damage. Political issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm. Correspondent banking AML risks Even if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with correspondent banks with connections to such countries. It is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’. Correspondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime. Financial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified. How regulators classify high-risk jurisdictions Different regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes. How the FATF high-risk countries classification works The FATF looks at various factors when deciding whether to review a country’s AML/CTF risk. A review may be triggered if a country: Does not participate in a FATF-style regional body (FSRB) Is nominated for review by a FATF member Has achieved a poor result on a mutual evaluation (i.e., an in-depth analysis of its AML/CTF regime by another FATF member) Does not facilitate the prompt publishing of the results of a mutual evaluation The FATF review process is an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues. If the deficiencies are serious enough, the country may be placed on the FATF “grey list” , indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out. However, if a country fails to engage with the FATF to resolve any failings in its AML/CTF regime, then it could be placed on the FATF “black list” . This means the country is deemed to be especially high risk. How the EU identifies high-risk AML countries The EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following four stages : Priority setting. Countries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre. Assessing. The European Commission evaluates countries’ effectiveness in AML/CTF based on their legal framework and how this is applied across eight key areas . These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’. Listing. Any countries deemed to be high risk are then placed on the EU’s high-risk countries list . Follow-up. Listed countries are then continuously monitored for signs of any changes that could alter their risk profile. How the UK determines which countries are high-risk The UK closely follows the FATF AML lists when publishing advice to its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the “MLRs”). How the US designates high-risk AML jurisdictions The US Financial Crimes Enforcement Network (FinCEN) also follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict compliance obligations around due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering. FATF black list and grey list explained The FATF is an international body that identifies countries with strategic AML/CFT shortcomings. It compiles multiple lists, such as the High-Risk Jurisdictions Subject to a Call for Action and Jurisdictions under Increased Monitoring , which are updated three times a year. The FATF divides countries with strategic shortcomings in their AML/CTF regimes into two lists: High-risk Jurisdictions Subject to a Call for Action (“black list”) and Jurisdictions Under Increased Monitoring (“grey list”). The FATF “black list”: High-risk jurisdictions subject to a call for action When dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML/TF risks. The FATF “grey list”: Jurisdictions under increased monitoring When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries. Suggested read: The 10 Most Common AML Red Flags to Watch Out for in 2025 How the FATF high-risk countries lists are updated Countries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF publishes updates on which countries are on its lists three times a year, in February, June, and October. As covered above , countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a FATF-style regional body (FSRB) , being nominated by a FATF member, doing poorly in a mutual evaluation by another FATF member, or not enabling the timely publication of the results of a mutual evaluation. As part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list. If a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML/CTF regime. FATF grey list vs black list: A side-by-side comparison Grey list Black list Status of listed countries Strategic deficiencies in the AML/CTF regime, but working to improve Strategic deficiencies in the AML/CTF regime and not working to improve Level of AML/CTF risk Elevated / High High / Severe Engagement with FATF Actively working with FATF to resolve issues Not cooperating with FATF AML/CTF requirements for businesses Enhanced Due Diligence for customers in listed countries Countermeasures, including financial sanctions, may be implemented Impact for the listed countries includes: Less attractive for international investment, additional costs for rectifying issues, and potential for financial exclusion of citizens Financial isolation, high risk of financial exclusion for citizens Suggested read: Understanding the FATF Black and Grey Lists in 2024 What are the high-risk jurisdictions in 2026 ? The following countries are currently ‘blacklisted’ by the FATF: Democratic People’s Republic of Korea Iran Myanmar The following countries are ‘grey listed’ by the FATF: Algeria Angola Bolivia British Virgin Islands Bulgaria Cameroon Côte d’Ivoire Democratic Republic of Congo Haiti Kenya Kuwait Lao People’s Democratic Republic Lebanon Monaco Namibia Nepal Papua New Guinea South Sudan Syria Venezuela Vietnam Yemen Burkina Faso, Mozambique, Nigeria, and South Africa have all recently been removed from the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been added to the list in 2026 for their deficiencies in AML/CFT frameworks and related risks. All in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions. How to identify exposure to high-risk jurisdictions Businesses can identify their AML risk exposure to high-risk jurisdictions by following these steps: Staying up to date on the latest lists of high-risk countries : e.g., the FATF lists or regional and national lists. Carrying out a business-wide review : to pick up any potential points of interaction with high-risk countries. Taking a risk-based approach : evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk. Performing Enhanced Due Diligence : on any customers in a high-risk jurisdiction or with potential links to one. Checking partner businesses for connections to high-risk countries : e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction. AML compliance requirements for businesses Regulated financial institutions are legally required to follow international and local AML/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed. It’s necessary to apply Enhanced Due Diligence (EDD) measures in business relationships and transactions involving high-risk third countries for AML compliance purposes. Enhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds. This requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary. When companies deal with customers from high-risk third countries, they should be aware that: High-risk countries may be subject to financial sanctions, which require companies to take additional measures Regulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country However, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention. Also, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by: Applying a risk-based approach to determine whether Enhanced Due Diligence is required Screening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources Suggested read: Understanding the UN Sanctions How to stay updated on FATF lists The FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their publications page by checking the filter for ‘High-risk and other monitored jurisdictions’. Automating AML screening and monitoring AML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions. AML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors. Ongoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries. Risk management for FATF-listed countries When dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully. Sumsub’s automated Know Your Customer (KYC) and Transaction Monitoring solutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations. F AQ What are AML high-risk countries? AML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML/CTF regimes. What is the FATF grey list? The FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings. What is the difference between the FATF grey list and black list? The FATF grey and black lists both set out countries with significant problems with their AML/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF. Why are some countries considered high risk for AML? Countries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime. What countries are black listed for money laundering? The FATF’s black list includes: Democratic People’s Republic of Korea Iran Myanmar What countries are low risk for AML? Any country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct risk assessments . How can businesses comply with AML regulations in high-risk countries? Businesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries. How often does the FATF update its high-risk list? FATF continuously reviews countries for inclusion in or removal from its high-risk lists, publishing updates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML/CTF regime. What are high-risk industries in terms of AML? Based on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance: Banking and financial services Casinos and gambling Precious metals and stones dealers Real estate Virtual assets and cryptocurrencies Money services businesses, including currency exchanges and money transfer services Legal and accounting services Art and antiquities dealers Non-profit organizations High-value goods dealers
Markdown	![Cookie dog illustration](https://sumsub.com/_next/static/media/IconCookieDog.cbb41e16.svg) Cookie Break Time We use cookies to enhance the functionality of our website and its subdomains, and to personalize content and ads, always prioritizing your privacy and data security. You have the control to enable or disable optional cookies as you wish. For a deeper dive into our cookie usage, do check out our [Cookie Policy](https://sumsub.com/cookie-policy/). Manage cookies Accept all cookies Skip to content [Expert-led anti-fraud media](https://sumsub.com/media/) News Spotlight Knowledge hub Guides and Reports - Jan 06, 2026 - 9 min read # AML High-Risk Countries: FATF Grey List, Jurisdiction Risks, and Compliance Best Practices (2026) Countries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe. [![Ed Prior](https://sumsub.com/_next/image/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F10%2Fed-prior.jpeg&w=96&q=75)Ed Prior Content Writer](https://sumsub.com/blog/experts/ed-prior/) ![](https://sumsub.com/wp/wp-content/uploads/2024/08/aml-high-risk-countries_-fatf-grey-list-jurisdiction-risks-and-compliance-best-practices-2026.jpg) Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML/CFT frameworks than others, as reflected in designations such as the FATF grey list. The Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system. The FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest [FATF report](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html). Let’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe. ## What are AML high-risk countries? High-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the [Financial Action Task Force (FATF)](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html#:~:text=High-risk%20jurisdictions%20have%20significant%20strategic%20deficiencies%20in%20their%20regimes%20to%20counter%20money%20laundering%2C%20terrorist%20financing%2C%20and%20financing%20of%20proliferation.). High-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD). There are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF [“grey list” and “black list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html) are widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings. The term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions. ## High-risk AML countries: What are the real risks? Businesses that engage with customers in high-risk countries are at increased risk of issues, including: - Facilitating financial crime. Where a jurisdiction lacks a robust AML/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds. - Breaching international sanctions. If a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions. - Reputational damage. Political issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm. ### Correspondent banking AML risks Even if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with [correspondent banks](https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Correspondent-banking-services.html) with connections to such countries. It is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’. Correspondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime. Financial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified. ## How regulators classify high-risk jurisdictions Different regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes. ### How the FATF high-risk countries classification works The FATF looks at various [factors](https://www.fatf-gafi.org/en/topics/high-risk-and-other-monitored-jurisdictions.html#:~:text=The%20FATF%20reviews%20jurisdictions%20based%20on%20threats%2C%20vulnerabilities%2C%20or%20particular%20risks%20arising%20from%20the%20jurisdiction.%20Specifically%2C%20a%20jurisdiction%20will%20be%20reviewed%20when%3A) when deciding whether to review a country’s AML/CTF risk. A review may be triggered if a country: - Does not participate in a [FATF-style regional body (FSRB)](https://www.fatf-gafi.org/en/countries/global-network.html) - Is nominated for review by a FATF member - Has achieved a poor result on a [mutual evaluation](https://www.fatf-gafi.org/en/topics/mutual-evaluations.html) (i.e., an in-depth analysis of its AML/CTF regime by another FATF member) - Does not facilitate the prompt publishing of the results of a mutual evaluation The [FATF review process](https://www.fatf-gafi.org/en/topics/high-risk-and-other-monitored-jurisdictions.html#:~:text=During%20the%20review,remaining%20strategic%20deficiencies.) is an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues. If the deficiencies are serious enough, the country may be placed on the FATF [“grey list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html#:~:text=Jurisdictions%20under%20Increased%20Monitoring%20\(i.e.%20%22grey%20list%22\)), indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out. However, if a country fails to engage with the FATF to resolve any failings in its AML/CTF regime, then it could be placed on the FATF [“black list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html#:~:text=High-Risk%20Jurisdictions%20subject%20to%20a%20Call%20for%20Action%20\(i.e.%20%22black%20list%22\)). This means the country is deemed to be especially high risk. ### How the EU identifies high-risk AML countries The EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following [four stages](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=Promoting%20sustainable%20development-,What%20are%20the%20steps,-The%20listing%20process): 1. Priority setting. Countries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre. 2. Assessing. The European Commission evaluates countries’ effectiveness in AML/CTF based on their legal framework and how this is applied across [eight key areas](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level/eu-methodology-identification-high-risk-third-countries_en). These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’. 3. Listing. Any countries deemed to be high risk are then placed on the [EU’s high-risk countries list](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=of%20the%20Directive.-,Latest%20version%20of%20the%20list%20of%20high-risk%20third%20countries,-On%2010%20June). 4. Follow-up. Listed countries are then continuously monitored for signs of any changes that could alter their risk profile. ### How the UK determines which countries are high-risk The UK closely follows the FATF AML lists when [publishing advice](https://www.gov.uk/government/publications/money-laundering-advisory-notice-high-risk-third-countries--2/money-laundering-advisory-notice-high-risk-third-countries--2) to its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017](https://www.legislation.gov.uk/uksi/2017/692/contents) (the “MLRs”). ### How the US designates high-risk AML jurisdictions The US [Financial Crimes Enforcement Network (FinCEN)](https://www.fincen.gov/news/news-releases/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3) also follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict [compliance obligations](https://www.fincen.gov/news/news-releases/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3#:~:text=With%20respect%20to,for%20an%20FFI.) around due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering. ## FATF black list and grey list explained The FATF is an international body that identifies countries with strategic AML/CFT shortcomings. It compiles multiple lists, such as the [High-Risk Jurisdictions Subject to a Call for Action](https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-march-2022.html) and [Jurisdictions under Increased Monitoring](https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-march-2022.html), which are updated three times a year. The FATF divides countries with strategic shortcomings in their AML/CTF regimes into two lists: [High-risk Jurisdictions Subject to a Call for Action](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html) (“black list”) and [Jurisdictions Under Increased Monitoring](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html) (“grey list”). ### The FATF “black list”: High-risk jurisdictions subject to a call for action When dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML/TF risks. ### The FATF “grey list”: Jurisdictions under increased monitoring When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries. Suggested read: [The 10 Most Common AML Red Flags to Watch Out for in 2025](https://sumsub.com/blog/the-10-most-common-aml-red-flags-complete-guide/) ### How the FATF high-risk countries lists are updated Countries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF [publishes](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates on which countries are on its lists three times a year, in February, June, and October. As [covered above](https://sumsub.com/blog/aml-high-risk-countries/#classification), countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a [FATF-style regional body (FSRB)](https://www.fatf-gafi.org/en/countries/global-network.html), being nominated by a FATF member, doing poorly in a [mutual evaluation](https://www.fatf-gafi.org/en/topics/mutual-evaluations.html) by another FATF member, or not enabling the timely publication of the results of a mutual evaluation. As part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list. If a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML/CTF regime. ## FATF grey list vs black list: A side-by-side comparison \| \| \| \| \|---\|---\|---\| \| \| Grey list \| Black list \| \| Status of listed countries \| Strategic deficiencies in the AML/CTF regime, but working to improve \| Strategic deficiencies in the AML/CTF regime and not working to improve \| \| Level of AML/CTF risk \| Elevated / High \| High / Severe \| \| Engagement with FATF \| Actively working with FATF to resolve issues \| Not cooperating with FATF \| \| AML/CTF requirements for businesses \| Enhanced Due Diligence for customers in listed countries \| Countermeasures, including financial sanctions, may be implemented \| \| Impact for the listed countries includes: \| Less attractive for international investment, additional costs for rectifying issues, and potential for [financial exclusion](https://www.fca.org.uk/publication/external-research/exploring-financial-exclusion.pdf) of citizens \| Financial isolation, high risk of financial exclusion for citizens \| Suggested read: [Understanding the FATF Black and Grey Lists in 2024](https://sumsub.com/blog/fatf-black-grey-lists/) ## What are the high-risk jurisdictions in 2026? The following countries are currently [‘blacklisted’](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html) by the FATF: - Democratic People’s Republic of Korea - Iran - Myanmar The following countries are [‘grey listed’](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html) by the FATF: - Algeria - Angola - Bolivia - British Virgin Islands - Bulgaria - Cameroon - Côte d’Ivoire - Democratic Republic of Congo - Haiti - Kenya - Kuwait - Lao People’s Democratic Republic - Lebanon - Monaco - Namibia - Nepal - Papua New Guinea - South Sudan - Syria - Venezuela - Vietnam - Yemen Burkina Faso, Mozambique, Nigeria, and South Africa have all recently been [removed](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html#:~:text=JURISDICTIONS%20NO%20LONGER%20SUBJECT%20TO%20INCREASED%20MONITORING%20BY%20THE%20FATF) from the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been [added to the list](https://sumsub.com/media/news/fatf-adds-kuwait-and-papua-new-guinea-to-grey-list/) in 2026 for their deficiencies in AML/CFT frameworks and related risks. All in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions. ## How to identify exposure to high-risk jurisdictions Businesses can identify their AML risk exposure to high-risk jurisdictions by following these steps: - Staying up to date on the latest lists of high-risk countries: e.g., the FATF lists or regional and national lists. - Carrying out a business-wide review: to pick up any potential points of interaction with high-risk countries. - Taking a risk-based approach: evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk. - Performing Enhanced Due Diligence: on any customers in a high-risk jurisdiction or with potential links to one. - Checking partner businesses for connections to high-risk countries: e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction. ## AML compliance requirements for businesses Regulated financial institutions are legally required to follow international and local AML/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed. It’s necessary to apply [Enhanced Due Diligence (EDD)](https://sumsub.com/blog/enhanced-due-diligence/) measures in business relationships and transactions involving high-risk third countries for AML compliance purposes. Enhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds. This requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary. When companies deal with customers from high-risk third countries, they should be aware that: - High-risk countries may be subject to financial sanctions, which require companies to take additional measures - Regulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country However, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention. Also, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by: - Applying a risk-based approach to determine whether [Enhanced Due Diligence](https://sumsub.com/blog/enhanced-due-diligence/) is required - Screening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources Suggested read: [Understanding the UN Sanctions](https://sumsub.com/blog/un-sanctions-list/) ## How to stay updated on FATF lists The FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their [publications page](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) by checking the filter for ‘High-risk and other monitored jurisdictions’. ## Automating AML screening and monitoring AML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions. AML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors. Ongoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries. ## Risk management for FATF-listed countries When dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully. Sumsub’s automated [Know Your Customer](https://sumsub.com/kyc-compliance/) (KYC) and [Transaction Monitoring](https://sumsub.com/aml-transaction-monitoring/) solutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations. ## FAQ - ### What are AML high-risk countries? AML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML/CTF regimes. - ### What is the FATF grey list? The FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings. - ### What is the difference between the FATF grey list and black list? The FATF grey and black lists both set out countries with significant problems with their AML/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF. - ### Why are some countries considered high risk for AML? Countries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime. - ### What countries are black listed for money laundering? The FATF’s black list includes: - Democratic People’s Republic of Korea - Iran - Myanmar - ### What countries are low risk for AML? Any country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct [risk assessments](https://sumsub.com/blog/kyc-risk-rating/). - ### How can businesses comply with AML regulations in high-risk countries? Businesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries. - ### How often does the FATF update its high-risk list? FATF continuously reviews countries for inclusion in or removal from its high-risk lists, [publishing](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML/CTF regime. - ### What are high-risk industries in terms of AML? Based on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance: - Banking and financial services - Casinos and gambling - Precious metals and stones dealers - Real estate - Virtual assets and cryptocurrencies - Money services businesses, including currency exchanges and money transfer services - Legal and accounting services - Art and antiquities dealers - Non-profit organizations - High-value goods dealers Share this article [Advanced](https://sumsub.com/blog/tags/advanced/)[Article](https://sumsub.com/blog/tags/article/)[Crypto](https://sumsub.com/blog/tags/crypto/)[EDD](https://sumsub.com/blog/tags/edd/)[FATF](https://sumsub.com/blog/tags/fatf/)[Financial Institutions](https://sumsub.com/blog/tags/financial-institutions/)[Fintech](https://sumsub.com/blog/tags/fintech/)[Global](https://sumsub.com/blog/tags/global/)[KYC/AML](https://sumsub.com/blog/tags/kyc-aml/)[Money Laundering](https://sumsub.com/blog/tags/money-laundering/) ### Relevant articles - Beginner - Intermediate - Advanced [Article 1 week ago 12 min read Top Crypto-Friendly Countries in 2026 Explore the best countries for crypto businesses in 2026 and learn where regulations and incentives favor growth. ![Top Crypto-Friendly Countries in 2026](https://sumsub.com/_next/image/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F02%2Fthe-top-10-crypto-friendly-countries-2025-2.png&w=1024&q=75) ![Ed Prior](https://sumsub.com/_next/image/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2025%2F10%2Fed-prior.jpeg&w=96&q=75) Ed Prior Content Writer ![Alisa Abramova](https://sumsub.com/_next/image/?url=https%3A%2F%2Fsumsub.com%2Fwp%2Fwp-content%2Fuploads%2F2023%2F04%2Ffile-00029-%E2%80%94-kopiya.jpg&w=96&q=75) Alisa Abramova Senior Content Manager](https://sumsub.com/blog/crypto-friendly-countries/) [Article 1 week ago 8 min read Fraud Prevention for Hospitality Leaders: Tackling Hotel Fraud in 2026 Hospitality fraud trends are evolving. 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Not everyone loves compliance—but we do. Sumsub helps businesses verify users, prevent fraud, and meet regulatory requirements anywhere in the world, without compromises. From neobanks to mobility apps, we make sure honest users get in, and bad actors stay out. 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Readable Markdown	- Jan 06, 2026 - 9 min read Countries designated as high-risk for money laundering pose serious risks to businesses. Learn how these countries are identified, the risks they pose, and how to stay safe. ![](https://sumsub.com/wp/wp-content/uploads/2024/08/aml-high-risk-countries_-fatf-grey-list-jurisdiction-risks-and-compliance-best-practices-2026.jpg) Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) laws exist to protect businesses and their customers, as well as to maintain the integrity of financial systems. Under these laws, regulated entities must identify, assess, and understand the money laundering risks to which they may be exposed, including geographical risks. However, the strength and effectiveness of these rules vary by jurisdiction, and some countries are considered to have weaker AML/CFT frameworks than others, as reflected in designations such as the FATF grey list. The Financial Action Task Force (FATF) is a recognized international watchdog that combats financial crime in more than 200 countries. The FATF identifies countries with significant deficiencies in their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regimes by conducting evaluations. They regularly publish the results, affecting each country’s reputation in the global financial system. The FATF publicly identifies higher-risk jurisdictions through its “high-risk” and “increased monitoring” lists, which help inform global AML/CFT risk assessments. However, it does not issue an official list of low-risk countries. Yet, this helps companies determine how to best deal with clients from certain jurisdictions, if at all. 23 countries are currently identified as having significant AML/CFT deficiencies, with three being designated as “high-risk” while a further 20 are subject to increased monitoring recommendations, according to the latest [FATF report](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html). Let’s dig into how countries are assessed as high risk, the risks for businesses, and what you can do to stay safe. ## What are AML high-risk countries? High-risk AML countries are countries that are considered to pose a high risk for money laundering activity. Countries may be designated high risk where it is believed that there are “significant strategic deficiencies” in their approach to preventing money laundering, according to the [Financial Action Task Force (FATF)](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html#:~:text=High-risk%20jurisdictions%20have%20significant%20strategic%20deficiencies%20in%20their%20regimes%20to%20counter%20money%20laundering%2C%20terrorist%20financing%2C%20and%20financing%20of%20proliferation.). High-risk countries may also have serious deficiencies in relation to countering the financing of terrorism and proliferation of Weapons of Mass Destruction (WMD). There are various governmental and international schemes for assessing and publicizing countries’ risks of money laundering and other forms of financial crime. The FATF [“grey list” and “black list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html) are widely recognized around the world, while jurisdictions such as the EU and UK all produce their own high-risk country ratings. The term “high-risk third countries” is commonly used in regulatory contexts to indicate jurisdictions requiring enhanced due diligence by financial institutions. ## High-risk AML countries: What are the real risks? Businesses that engage with customers in high-risk countries are at increased risk of issues, including: - Facilitating financial crime. Where a jurisdiction lacks a robust AML/CFT framework, there is a higher risk that customers or counterparties may be involved in money laundering, terrorist financing, or related financial crime. Weak regulatory oversight can also make it more challenging to conduct effective customer due diligence, including the reliable verification of identities, beneficial ownership, and sources of funds. - Breaching international sanctions. If a country is subject to international sanctions, dealing with customers in that country could result in a company being found in breach of those sanctions. - Reputational damage. Political issues can mean that simply doing business in high-risk countries can damage a company’s reputation. However, if it is found that a company has breached money laundering regulations, international sanctions, or other laws or restrictions, this could cause very serious reputational harm. ### Correspondent banking AML risks Even if a business does not directly engage with customers in high-risk countries, it could still be at risk if it works with [correspondent banks](https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Correspondent-banking-services.html) with connections to such countries. It is common practice for banks that do not have a presence in a particular country to work with banks that do in order to facilitate transactions to or from that country. This is known as ‘correspondent banking’. Correspondent banks may not have the same standard of AML controls as the financial institutions they are partnering with, so those partners could be at greater risk of connection to financial crime. Financial institutions should carry out appropriate due diligence on any correspondent banks to identify any risks of financial crime. They should then put in place effective controls to manage any risks identified. ## How regulators classify high-risk jurisdictions Different regulators and international bodies have their own methods for classifying high-risk jurisdictions, although most follow the lead of the FATF. In this section, we look at how the FATF and some leading jurisdictions identify high-risk jurisdictions for AML purposes. ### How the FATF high-risk countries classification works The FATF looks at various [factors](https://www.fatf-gafi.org/en/topics/high-risk-and-other-monitored-jurisdictions.html#:~:text=The%20FATF%20reviews%20jurisdictions%20based%20on%20threats%2C%20vulnerabilities%2C%20or%20particular%20risks%20arising%20from%20the%20jurisdiction.%20Specifically%2C%20a%20jurisdiction%20will%20be%20reviewed%20when%3A) when deciding whether to review a country’s AML/CTF risk. A review may be triggered if a country: - Does not participate in a [FATF-style regional body (FSRB)](https://www.fatf-gafi.org/en/countries/global-network.html) - Is nominated for review by a FATF member - Has achieved a poor result on a [mutual evaluation](https://www.fatf-gafi.org/en/topics/mutual-evaluations.html) (i.e., an in-depth analysis of its AML/CTF regime by another FATF member) - Does not facilitate the prompt publishing of the results of a mutual evaluation The [FATF review process](https://www.fatf-gafi.org/en/topics/high-risk-and-other-monitored-jurisdictions.html#:~:text=During%20the%20review,remaining%20strategic%20deficiencies.) is an investigation into a regime’s technical compliance and effectiveness, as well as any progress being made. Where deficiencies are uncovered, FATF will attempt to work with the jurisdiction to resolve these issues. If the deficiencies are serious enough, the country may be placed on the FATF [“grey list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html#:~:text=Jurisdictions%20under%20Increased%20Monitoring%20\(i.e.%20%22grey%20list%22\)), indicating that there are problems, but the jurisdiction is engaging with the FATF to sort them out. However, if a country fails to engage with the FATF to resolve any failings in its AML/CTF regime, then it could be placed on the FATF [“black list”](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html#:~:text=High-Risk%20Jurisdictions%20subject%20to%20a%20Call%20for%20Action%20\(i.e.%20%22black%20list%22\)). This means the country is deemed to be especially high risk. ### How the EU identifies high-risk AML countries The EU has its own process for identifying high-risk countries in addition to those listed by FATF. This process is made up of the following [four stages](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=Promoting%20sustainable%20development-,What%20are%20the%20steps,-The%20listing%20process): 1. Priority setting. Countries that require assessment are identified and prioritized based on criteria such as their impact on the integrity of the EU financial system, the strength of their ties to the EU economy, and whether a country is recognized as an international offshore financial centre. 2. Assessing. The European Commission evaluates countries’ effectiveness in AML/CTF based on their legal framework and how this is applied across [eight key areas](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level/eu-methodology-identification-high-risk-third-countries_en). These areas include criminalization of money laundering, Customer Due Diligence requirements, and the powers and procedures of ‘competent authorities’. 3. Listing. Any countries deemed to be high risk are then placed on the [EU’s high-risk countries list](https://finance.ec.europa.eu/financial-crime/anti-money-laundering-and-countering-financing-terrorism-international-level_en#:~:text=of%20the%20Directive.-,Latest%20version%20of%20the%20list%20of%20high-risk%20third%20countries,-On%2010%20June). 4. Follow-up. Listed countries are then continuously monitored for signs of any changes that could alter their risk profile. ### How the UK determines which countries are high-risk The UK closely follows the FATF AML lists when [publishing advice](https://www.gov.uk/government/publications/money-laundering-advisory-notice-high-risk-third-countries--2/money-laundering-advisory-notice-high-risk-third-countries--2) to its regulated sector on which high-risk countries require Enhanced Due Diligence. Regulated entities in the UK are obliged to carry out EDD on high-risk third countries under the [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017](https://www.legislation.gov.uk/uksi/2017/692/contents) (the “MLRs”). ### How the US designates high-risk AML jurisdictions The US [Financial Crimes Enforcement Network (FinCEN)](https://www.fincen.gov/news/news-releases/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3) also follows the FATF lists. It advises US financial institutions to “consider the FATF’s stance” when “reviewing their obligations and risk-based policies, procedures, and practices”. Regulated financial institutions in the US have strict [compliance obligations](https://www.fincen.gov/news/news-releases/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-3#:~:text=With%20respect%20to,for%20an%20FFI.) around due diligence for foreign financial institutions, including taking an appropriate risk-based approach to detect and prevent money laundering. ## FATF black list and grey list explained The FATF is an international body that identifies countries with strategic AML/CFT shortcomings. It compiles multiple lists, such as the [High-Risk Jurisdictions Subject to a Call for Action](https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-march-2022.html) and [Jurisdictions under Increased Monitoring](https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-march-2022.html), which are updated three times a year. The FATF divides countries with strategic shortcomings in their AML/CTF regimes into two lists: [High-risk Jurisdictions Subject to a Call for Action](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html) (“black list”) and [Jurisdictions Under Increased Monitoring](https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html) (“grey list”). ### The FATF “black list”: High-risk jurisdictions subject to a call for action When dealing with countries on this list, the FATF calls on all members to apply EDD measures to protect the international financial system from ML/TF risks. ### The FATF “grey list”: Jurisdictions under increased monitoring When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving its strategic shortcomings within agreed timeframes and is subject to increased monitoring. The FATF welcomes the progress made by “grey list” countries in combating money laundering and doesn’t impose tough sanctions on them. However, these countries may still face economic sanctions from institutions like the International Monetary Fund (IMF) and the World Bank and experience adverse effects on trade. In any case, regulated financial institutions, such as banks, need to be closely monitored in such countries. Suggested read: [The 10 Most Common AML Red Flags to Watch Out for in 2025](https://sumsub.com/blog/the-10-most-common-aml-red-flags-complete-guide/) ### How the FATF high-risk countries lists are updated Countries are regularly added to the FATF grey list and, less frequently, the black list, while those that successfully address their shortcomings are removed. The FATF [publishes](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates on which countries are on its lists three times a year, in February, June, and October. As [covered above](https://sumsub.com/blog/aml-high-risk-countries/#classification), countries will be added to these lists following a review, which can be triggered by issues such as a country not participating in a [FATF-style regional body (FSRB)](https://www.fatf-gafi.org/en/countries/global-network.html), being nominated by a FATF member, doing poorly in a [mutual evaluation](https://www.fatf-gafi.org/en/topics/mutual-evaluations.html) by another FATF member, or not enabling the timely publication of the results of a mutual evaluation. As part of the process of adding a country to the grey list, deadlines will be agreed upon for the relevant authorities to remedy any deficiencies in their regimes. If a country meets the agreed objectives by these deadlines, then it should be removed from the list. If it fails to meet those objectives, it could remain on the grey list or even be moved to the black list. If a country wishes to be removed from the FATF black list, it would have to commit to working with the FATF to address the flaws in its AML/CTF regime. ## FATF grey list vs black list: A side-by-side comparison \| \| \| \| \|---\|---\|---\| \| \| Grey list \| Black list \| \| Status of listed countries \| Strategic deficiencies in the AML/CTF regime, but working to improve \| Strategic deficiencies in the AML/CTF regime and not working to improve \| \| Level of AML/CTF risk \| Elevated / High \| High / Severe \| \| Engagement with FATF \| Actively working with FATF to resolve issues \| Not cooperating with FATF \| \| AML/CTF requirements for businesses \| Enhanced Due Diligence for customers in listed countries \| Countermeasures, including financial sanctions, may be implemented \| \| Impact for the listed countries includes: \| Less attractive for international investment, additional costs for rectifying issues, and potential for [financial exclusion](https://www.fca.org.uk/publication/external-research/exploring-financial-exclusion.pdf) of citizens \| Financial isolation, high risk of financial exclusion for citizens \| Suggested read: [Understanding the FATF Black and Grey Lists in 2024](https://sumsub.com/blog/fatf-black-grey-lists/) ## What are the high-risk jurisdictions in 2026? The following countries are currently [‘blacklisted’](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html) by the FATF: - Democratic People’s Republic of Korea - Iran - Myanmar The following countries are [‘grey listed’](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html) by the FATF: - Algeria - Angola - Bolivia - British Virgin Islands - Bulgaria - Cameroon - Côte d’Ivoire - Democratic Republic of Congo - Haiti - Kenya - Kuwait - Lao People’s Democratic Republic - Lebanon - Monaco - Namibia - Nepal - Papua New Guinea - South Sudan - Syria - Venezuela - Vietnam - Yemen Burkina Faso, Mozambique, Nigeria, and South Africa have all recently been [removed](https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html#:~:text=JURISDICTIONS%20NO%20LONGER%20SUBJECT%20TO%20INCREASED%20MONITORING%20BY%20THE%20FATF) from the FATF grey list as they are considered to have made sufficient progress in addressing the deficiencies in their regimes. Also, Papua New Guinea and Kuwait have been [added to the list](https://sumsub.com/media/news/fatf-adds-kuwait-and-papua-new-guinea-to-grey-list/) in 2026 for their deficiencies in AML/CFT frameworks and related risks. All in all, high-risk country ratings help businesses determine risks associated with customers, corporate customers, and transactions. In turn, this helps businesses take necessary precautions. ## How to identify exposure to high-risk jurisdictions Businesses can identify their AML risk exposure to high-risk jurisdictions by following these steps: - Staying up to date on the latest lists of high-risk countries: e.g., the FATF lists or regional and national lists. - Carrying out a business-wide review: to pick up any potential points of interaction with high-risk countries. - Taking a risk-based approach: evaluating each customer to create a unique risk profile, then carrying out appropriate AML checks based on their individual level of risk. - Performing Enhanced Due Diligence: on any customers in a high-risk jurisdiction or with potential links to one. - Checking partner businesses for connections to high-risk countries: e.g., when working with correspondent banks to gain or provide access to a particular jurisdiction. ## AML compliance requirements for businesses Regulated financial institutions are legally required to follow international and local AML/CTF standards. This means obtaining the full range of required information and identifying all relevant risk factors before commencing a business relationship—and applying additional CDD measures if needed. It’s necessary to apply [Enhanced Due Diligence (EDD)](https://sumsub.com/blog/enhanced-due-diligence/) measures in business relationships and transactions involving high-risk third countries for AML compliance purposes. Enhanced Due Diligence is an in-depth verification procedure for high-risk situations (i.e., dealing with customers from high-risk countries, PEPs, cross-border correspondent relationships with a third country, high transaction amounts, etc.). It requires additional checks, such as verification of sources of wealth and funds. This requirement is common for all high-risk AML countries. However, the scope of the EDD measures necessary may vary. When companies deal with customers from high-risk third countries, they should be aware that: - High-risk countries may be subject to financial sanctions, which require companies to take additional measures - Regulators worldwide require companies to apply EDD measures in any transaction or business relationship with a person established in a high-risk third country However, this doesn’t mean that customers from high-risk countries are automatically involved in criminal activities; rather, they indicate higher risk factors that warrant closer attention. Also, companies are required to assess risk factors related to suspicious customer interactions from high-risk countries by: - Applying a risk-based approach to determine whether [Enhanced Due Diligence](https://sumsub.com/blog/enhanced-due-diligence/) is required - Screening sanctions lists, global watchlists, Politically Exposed Persons (PEPs) lists, adverse media, and other similar sources Suggested read: [Understanding the UN Sanctions](https://sumsub.com/blog/un-sanctions-list/) ## How to stay updated on FATF lists The FATF publishes the latest version of its grey and black AML lists three times a year, in February, June, and October. You can find the latest versions of the FATF high-risk countries lists on their [publications page](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) by checking the filter for ‘High-risk and other monitored jurisdictions’. ## Automating AML screening and monitoring AML screening and monitoring are both key components of an effective AML framework and are absolutely essential for managing risk exposure from high-risk jurisdictions. AML screening allows companies to verify customers’ identities and check them against global watchlists, including for international sanctions and Politically Exposed Persons (PEPs). This can help to identify any potential links to high-risk jurisdictions, as well as other AML risk factors. Ongoing monitoring of customer transactions is also crucial for identifying signs of financial crime. This is particularly important when dealing with customers from high-risk countries where the likelihood of financial crime is higher, as well as for customers with potential links to such countries. ## Risk management for FATF-listed countries When dealing with FATF lists, the paramount controls are customer verification and transaction monitoring, which allow businesses to apply different risk-based approaches depending on the jurisdiction. These measures help mitigate corresponding risks by requesting additional documents where applicable and reviewing transactions more carefully. Sumsub’s automated [Know Your Customer](https://sumsub.com/kyc-compliance/) (KYC) and [Transaction Monitoring](https://sumsub.com/aml-transaction-monitoring/) solutions support a risk-based AML framework by enabling enhanced due diligence for high-risk jurisdictions. They make compliance processes faster and more reliable while reducing manual workloads and operational costs. With the flexibility to meet regulatory requirements across jurisdictions worldwide, our tools help simplify compliance and ensure you stay aligned with the latest FATF and local regulatory expectations. ## FAQ - ### What are AML high-risk countries? AML high-risk countries are countries that pose an elevated risk for money laundering activity due to significant deficiencies in their AML/CTF regimes. - ### What is the FATF grey list? The FATF grey list (countries under increased monitoring) is an internationally recognized list of countries that have serious deficiencies in their AML/CTF regimes but are working with the Financial Action Task Force (FATF) to rectify these shortcomings. - ### What is the difference between the FATF grey list and black list? The FATF grey and black lists both set out countries with significant problems with their AML/CTF regimes. However, countries on the grey list are working with FATF to resolve these issues, while those on the black list are not cooperating with FATF. - ### Why are some countries considered high risk for AML? Countries may be considered high risk for Anti-Money Laundering (AML) purposes where there are serious flaws in their approach to preventing money laundering and terrorist financing. This means that companies working with customers in those countries are themselves at higher risk of involvement in financial crime. - ### What countries are black listed for money laundering? The FATF’s black list includes: - Democratic People’s Republic of Korea - Iran - Myanmar - ### What countries are low risk for AML? Any country that doesn’t fall into the black list and grey list—for example, Germany and Canada. Yet, to be certain, it’s essential to conduct [risk assessments](https://sumsub.com/blog/kyc-risk-rating/). - ### How can businesses comply with AML regulations in high-risk countries? Businesses must ensure they understand the AML regulatory requirements in their own country and any countries where they operate when dealing with high-risk jurisdictions. They should carry out Enhanced Due Diligence as required, including on any correspondent banks they work with that may be operating in high-risk countries. - ### How often does the FATF update its high-risk list? FATF continuously reviews countries for inclusion in or removal from its high-risk lists, [publishing](https://www.fatf-gafi.org/en/publications.html#:~:text=Style%20Regional%20Bodies.-,Latest%20publications,-Search%20for) updates three times a year, in February, June, and October. A country will be reviewed for inclusion if certain trigger events occur, such as a FATF member nominating the country for review. A country can be removed from the grey list if it successfully implements the FATF’s suggestions for improvement. A country could be moved from the black list to the grey list if it began to engage with the FATF to address concerns about its AML/CTF regime. - ### What are high-risk industries in terms of AML? Based on the FATF's guidance, certain industries are considered higher risk for money laundering and terrorist financing. While the FATF does not provide an explicit list of 'high-risk industries', it does highlight sectors that require enhanced due diligence and monitoring. Here are some of the industries generally considered high-risk in AML compliance: - Banking and financial services - Casinos and gambling - Precious metals and stones dealers - Real estate - Virtual assets and cryptocurrencies - Money services businesses, including currency exchanges and money transfer services - Legal and accounting services - Art and antiquities dealers - Non-profit organizations - High-value goods dealers
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