The Financial Action Task Force (FATF) released significant updates on 21 February 2025 regarding jurisdictions under increased monitoring and high-risk jurisdictions subject to a call for action. These changes reflect ongoing global efforts to strengthen frameworks for anti-money laundering (AML), combating the financing of terrorism (CFT), and counter-proliferation financing (CPF).
Philippines Successfully Exits Increased Monitoring List
The Philippines has been removed from FATF’s list of jurisdictions under increased monitoring. This decision follows the country’s successful implementation of critical reforms to enhance its AML/CFT framework. FATF acknowledged the Philippines’ substantial progress in addressing strategic deficiencies identified during earlier evaluations.
Nepal and Lao PDR Newly Added to Increased Monitoring
Conversely, Nepal and Lao PDR have been added to FATF’s list of jurisdictions under increased monitoring. Both countries are working closely with FATF and other international partners to address identified shortcomings in their AML/CFT regimes.
High-Risk Jurisdictions Remain Under Close Watch
- The FATF continues to call for countermeasures against the Democratic People’s Republic of Korea (DPRK) and Iran due to their failure to address significant systemic risks.
- Myanmar remains a jurisdiction requiring enhanced due diligence, as it continues to face serious concerns regarding its AML/CFT controls.
Maintaining Vigilance While Supporting Legitimate Financial Activities
The FATF reiterated the importance of maintaining strong vigilance across the global financial system while ensuring that legitimate humanitarian assistance, remittance flows, and non-profit activities are not unduly disrupted. Member states are encouraged to adopt a risk-based approach that balances compliance obligations with the need to facilitate legitimate financial transactions.
Global Implications
These developments underscore the importance of continued international cooperation in combating financial crime. Financial institutions and businesses operating in or with the affected jurisdictions are advised to review their risk management frameworks, enhance due diligence measures, and ensure ongoing compliance with evolving international standards.
