FATF June 2026 Update: Iraq and Bosnia Added to Grey List as Algeria and Namibia Exit

The Financial Action Task Force’s June 2026 plenary has produced a fresh update to the global anti-money laundering and counter-terrorist financing watchlists, with two jurisdictions added to increased monitoring and two removed after completing their action plans.

The latest changes are relevant not only for financial institutions and compliance professionals, but also for international businesses, investors, professional advisers and anyone monitoring financial crime, sanctions, cross-border payments and country risk.

At the June plenary in Paris, the FATF added Bosnia and Herzegovina and Iraq to its list of jurisdictions under increased monitoring, commonly referred to as the “grey list”. At the same time, Algeria and Namibia were removed from increased monitoring after completing their required action plans and passing FATF on-site assessments.

The FATF’s high-risk list, commonly known as the “black list”, remains unchanged.

What Changed in June 2026

The main list changes are straightforward:

• Bosnia and Herzegovina was added to the grey list.

• Iraq was added to the grey list.

• Algeria was removed from the grey list.

• Namibia was removed from the grey list.

• The black list remains unchanged.

This means the current FATF grey list now consists of 22 jurisdictions, while the FATF high-risk list continues to include three jurisdictions.

Current FATF High-Risk Jurisdictions

The FATF high-risk list is reserved for jurisdictions with serious strategic deficiencies in their systems for preventing money laundering, terrorist financing and proliferation financing.

As at the June 2026 update, the high-risk jurisdictions are:

• Democratic People’s Republic of Korea (DPRK / North Korea)

• Iran

• Myanmar

However, these three jurisdictions should not all be treated identically.

DPRK and Iran remain subject to FATF calls for countermeasures. This is the strongest level of FATF concern and reflects the seriousness of the deficiencies identified by FATF.

Myanmar remains on the high-risk list, but the FATF currently calls for enhanced due diligence measures proportionate to the risks, rather than countermeasures. FATF has also warned that countermeasures may be considered if Myanmar does not make further progress.

This distinction matters. It is not accurate to simply say that all three black-listed jurisdictions are subject to the exact same FATF treatment.

Current FATF Grey List: June 2026

Following the June 2026 plenary, the jurisdictions under increased monitoring are:

• Angola

• Bolivia

• Bosnia and Herzegovina

• Bulgaria

• Cameroon

• Côte d’Ivoire

• Democratic Republic of the Congo

• Haiti

• Iraq

• Kenya

• Kuwait

• Lao People’s Democratic Republic

• Lebanon

• Monaco

• Nepal

• Papua New Guinea

• South Sudan

• Syria

• Venezuela

• Vietnam

• Virgin Islands (UK)

• Yemen

This is the corrected list of jurisdictions under increased monitoring following the June 2026 FATF update.

Why Bosnia and Herzegovina Was Added

Bosnia and Herzegovina has committed to work with FATF and MONEYVAL to address strategic deficiencies in its AML/CFT framework.

The concerns identified include the need to deepen the country’s understanding of money laundering and terrorist financing risks, strengthen supervision, improve access to accurate beneficial ownership information, improve suspicious transaction reporting feedback, and demonstrate stronger investigation and prosecution outcomes.

Its addition to the grey list does not mean the country is subject to sanctions. Rather, it means that Bosnia and Herzegovina is now under closer international monitoring while it works through an agreed reform plan.

Why Iraq Was Added

Iraq has also been added to the grey list after committing to work with FATF and MENAFATF to strengthen its AML/CFT regime.

The FATF identified several priority areas, including:

• risks connected to cash;

• informal money or value transfer services;

• suspicious transaction reporting;

• beneficial ownership transparency;

• money laundering investigations;

• terrorist financing investigations;

• non-profit organisation risk; and

• proliferation financing targeted financial sanctions.

Iraq’s addition is particularly significant because of the country’s economic size, cash-based activity, reconstruction needs, cross-border flows and strategic position in the region.

As with other grey-listed jurisdictions, the listing does not mean that Iraq is cut off from the international financial system. It means that FATF expects targeted reforms and will monitor the country’s progress against a defined action plan.

Algeria and Namibia Removed From Increased Monitoring

The removal of Algeria and Namibia is a positive development and shows that the FATF process can work when jurisdictions complete their action plans and demonstrate sustained implementation.

Both jurisdictions will continue to work with their respective FATF-style regional bodies to maintain improvements. Removal from the grey list does not mean that all risk disappears, but it does mean FATF no longer subjects those jurisdictions to its increased monitoring process.

For Algeria and Namibia, the decision is also reputationally important. Grey-listing can affect international perception, correspondent banking relationships, investor confidence and the way businesses assess country risk. Removal from the list therefore sends a positive signal, although continued implementation will remain important.

The Broader FATF Agenda

The June 2026 plenary was not only about country lists.

FATF also adopted mutual evaluation reports for Canada and Türkiye, which will be published later in 2026 after quality and consistency review. These evaluations are part of FATF’s new assessment round, which places greater emphasis on effectiveness and timebound reform roadmaps.

The plenary also approved work on emerging financial crime risks, including:

• fraud;

• payment transparency;

• public-private information sharing;

• virtual assets;

• decentralised finance;

• terrorist financing through online platforms;

• underground banking;

• hawala and other informal transfer systems; and

• risks linked to the gambling sector.

This reflects a broader shift in global AML/CFT supervision. Regulators are increasingly focused not only on whether laws exist on paper, but whether systems produce real outcomes: better intelligence, stronger investigations, effective supervision, timely sanctions implementation, beneficial ownership transparency and meaningful asset recovery.

Incoming UK Presidency

The June 2026 plenary was the final plenary under the Mexican FATF Presidency. From July 2026, the United Kingdom assumes the FATF Presidency, with a stated focus on fraud, effective implementation of the risk-based approach, stronger supervision and better information sharing.

This is likely to be highly relevant for the private sector. Fraud, scams, mule accounts, cyber-enabled financial crime, cross-border payment transparency and public-private cooperation are expected to remain central themes in the coming period.

The direction is clear: FATF is placing increasing emphasis on practical effectiveness, not only formal legal compliance. Countries will be judged not only on whether they have AML/CFT laws in place, but whether those laws are producing credible results.

Final Takeaway

The June 2026 FATF update makes four headline changes: Iraq and Bosnia and Herzegovina have been added to the grey list, Algeria and Namibia have been removed, and the high-risk list remains unchanged.

The corrected grey list now contains 22 jurisdictions. The high-risk list remains DPRK, Iran and Myanmar, with DPRK and Iran subject to countermeasure calls and Myanmar subject to enhanced due diligence measures proportionate to risk.

The FATF lists are not sanctions lists, but they remain important indicators of country risk and international financial crime exposure. The latest update shows both sides of the FATF process: countries can be placed under increased monitoring when strategic weaknesses remain, but they can also be removed when reforms are completed and verified.

For businesses, investors and observers of financial crime risk, the June 2026 update is a reminder that country risk is not static. It changes as jurisdictions reform, regress, or come under closer international scrutiny.

By fLEXI tEAM