FATF Expands Grey List and Tightens Rules on Financial Crime in 2026

The Financial Action Task Force (FATF) has expanded its monitoring list while introducing new measures to tackle financial crime. At its June 2026 plenary, the body approved initiatives targeting emerging risks and updated standards to protect humanitarian aid from sanctions interference. Two more countries were added to its 'grey list' during the session. Bosnia and Herzegovina and Iraq joined the FATF’s increased monitoring list in June 2026. This brings the total number of jurisdictions under scrutiny to 22, including Angola, Bolivia, Cameroon, and others. These countries now face greater oversight from financial institutions worldwide.

Algeria and Namibia were removed from the list after completing reforms to strengthen their anti-money laundering and counter-terrorism financing systems. Financial institutions must now apply stricter risk assessments when engaging with higher-risk markets on the list.

The FATF also announced new standards to prevent sanctions from disrupting humanitarian assistance. Vivek Aggarwal of India was appointed as the organisation’s Vice President, with his term beginning in July 2026. Jurisdictions on the grey list will experience higher compliance costs and more complex cross-border transactions until they address their identified weaknesses. The updated FATF standards aim to balance security concerns with the need to maintain essential humanitarian aid flows.