FATF/MONEYVAL Plenary & EU High-Risk List Updates

In June 2025, critical updates were published by both the European Commission and the Financial Action Task Force (FATF), including its regional partner MONEYVAL, impacting the global landscape of anti-money laundering (AML) and counter-terrorism financing (CFT) compliance. These developments are of immediate importance to institutions operating under the EU AML framework and those monitoring global jurisdictional risk.

European Commission Updates High-Risk Third-Country List (10 June 2025)

The European Commission has revised its list of high-risk third-country jurisdictions identified as having strategic deficiencies in their AML/CFT regimes. This list directly influences compliance obligations for EU-regulated entities, which are required to apply enhanced due diligence (EDD) when dealing with clients, transactions or business relationships involving countries listed as high-risk.

Newly Listed Jurisdictions:

• Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, Venezuela

Delisted Jurisdictions:

• Barbados, Gibraltar, Jamaica, Panama, The Philippines, Senegal, Uganda, United Arab Emirates

The European Commission aligns its list with the FATF’s “Jurisdictions under Increased Monitoring,” reflecting its commitment to global AML/CFT standards. As a founding FATF member, the EU plays an active role in the oversight of remediation efforts by listed countries.

FATF/MONEYVAL Joint Plenary Summary (June 2025)

A joint FATF–MONEYVAL Plenary, chaired by FATF President Elisa de Anda Madrazo and MONEYVAL Chair Nicola Muccioli, was held at the Council of Europe. The meeting reinforced the global AML/CFT/CPF (Counter-Proliferation Financing) agenda and included notable strategic, technical and policy outcomes. Over 200 jurisdictions and observers participated.

Key Decisions and Updates:

1. Changes to FATF Standards – Cross-Border Payment Reforms
The Plenary approved major updates to Recommendation 16, supporting the G20 initiative to improve cross-border payments. These updates aim to:

• Increase transparency in transactions over USD/EUR 1,000
• Clarify originator and beneficiary information requirements
• Promote the use of technology to reduce fraud and error
• Improve sanctions implementation and crime detection

These changes will be published on 18 June 2025, with mandatory compliance expected by 2030. They are designed to support financial inclusion while remaining aligned with privacy and data protection laws.

2. FATF Monitoring List Updates
The FATF updated the list of jurisdictions under increased monitoring, welcoming progress made by several countries, while adding new jurisdictions that have committed to addressing strategic deficiencies in their AML/CFT frameworks.

Countries added to the Increased Monitoring List:

• Bolivia made a high-level political commitment to work with the FATF and GAFILAT. Since its MER in December 2023, Bolivia has enhanced its understanding of ML/TF risks, improved financial intelligence dissemination and increased capacity to investigate terrorist financing. Bolivia’s action plan includes strengthening investigative techniques, improving risk-based supervision of DNFBPs, ensuring accurate beneficial ownership information and pursuing ML prosecutions.
• British Virgin Islands also committed to an action plan with the FATF and CFATF. Since its MER in November 2023, the jurisdiction has progressed on international cooperation, TF case identification and TFS implementation. Its forward plan includes improving supervision of key sectors like TCSPs and VASPs, ensuring BO data quality, enhancing SAR reporting and operationalising a new asset management framework.

Countries removed from the Increased Monitoring List:

• Croatia, Mali and the United Republic of Tanzania have been removed from the list following significant progress in addressing their respective action plans. Each demonstrated stronger ML/TF risk understanding, improved enforcement capabilities and enhanced supervision or TFS implementation. These jurisdictions will now continue working with their respective regional bodies (MONEYVAL, GIABA and ESAAMLG) to sustain progress.

These jurisdictions have completed their FATF Action Plans and demonstrated sufficient progress in strengthening their AML/CFT/CPF frameworks. They will continue monitoring through regional bodies.

3. Jurisdictions Subject to a Call for Action
The FATF continues to identify jurisdictions with significant strategic deficiencies in their anti-money laundering (AML), counter-terrorist financing (CFT), and counter-proliferation financing (CPF) frameworks. These jurisdictions are subject to calls for either countermeasures or enhanced due diligence (EDD), depending on the severity and persistence of deficiencies.

Democratic People’s Republic of Korea (DPRK)

The FATF remains gravely concerned by the DPRK’s persistent failure to address substantial deficiencies in its AML/CFT/CPF regime. In addition to posing a continued high risk of money laundering and terrorist financing, the DPRK’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) remain a serious threat to the integrity of the global financial system.

Since 2011, the FATF has repeatedly urged countries to implement robust countermeasures in line with United Nations Security Council Resolutions (UNSCRs), including:

• Terminating correspondent relationships with DPRK financial institutions;
• Shutting down branches or subsidiaries of DPRK banks; and
• Severely restricting financial transactions and business relationships with DPRK-linked individuals and entities.

Despite these long-standing warnings, the DPRK has reportedly expanded its access to the international financial system, further escalating proliferation financing risks. The FATF emphasises that DPRK uses shell companies, opaque ownership structures and front/joint ventures to evade sanctions. Consequently, all jurisdictions are strongly encouraged to apply enhanced due diligence, assess proliferation financing risks and enforce the full suite of countermeasures.

The FATF also noted concern over the termination of the UN’s 1718 Panel of Experts mandate, which previously provided credible insights into DPRK-related financial threats. FATF members are urged to compensate for this gap by maintaining high vigilance, strengthening independent risk assessments and ensuring full implementation of UNSCR 2270.

Iran

Despite a high-level political commitment in 2016 and partial legislative progress, Iran failed to fully implement its agreed FATF Action Plan, which expired in January 2018. In February 2020, the FATF reinstated countermeasures due to Iran’s failure to criminalize terrorist financing adequately, freeze terrorist assets and ratify the Palermo and Terrorist Financing Conventions in line with FATF Standards.

As of June 2025, Iran remains listed as a high-risk jurisdiction subject to a full FATF call for action. Jurisdictions are expected to:

• Intensify supervision of Iranian bank branches and subsidiaries;
• Mandate systematic reporting of transactions involving Iranian institutions; and
• Require enhanced external audit requirements for groups with exposure to Iran.

Unless Iran fully addresses its deficiencies (particularly ratifying and implementing the Palermo and Terrorist Financing Conventions) it will remain subject to countermeasures. The FATF remains especially concerned about the terrorist financing risk posed by Iran and its impact on the broader international financial system.

4. Jurisdiction Subject to a Call for Enhanced Due Diligence

Myanmar

Myanmar’s action plan to address strategic AML/CFT deficiencies expired in September 2021. With limited progress made since then, and the majority of action items still outstanding, the FATF continues to call on jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from Myanmar.

EDD measures should include heightened scrutiny of business relationships and transaction monitoring to detect unusual or suspicious activity. The FATF stresses that if Myanmar does not demonstrate meaningful progress by October 2025, the situation may escalate to a call for countermeasures.

Key deficiencies Myanmar must address include:

• Increased use of financial intelligence by law enforcement and improved FIU dissemination;
• Effective investigation and prosecution of money laundering in line with identified risks;
• Demonstrated cooperation on transnational ML cases;
• Increased asset freezing, seizure, and confiscation outcomes;
• Establishment of asset management systems to preserve seized value.

Importantly, jurisdictions must ensure that EDD measures do not disrupt legitimate financial flows, especially those related to humanitarian assistance, NPOs and remittances. The FATF underlined the need to avoid undue scrutiny of civil society activity, particularly given the need for support following natural disasters such as earthquakes.

Until Myanmar successfully completes its Action Plan, it will remain under heightened monitoring and subject to this call for enhanced due diligence.

Russia

The FATF suspension of the Russian Federation remains in place. Member states are urged to remain vigilant against the circumvention of international measures targeting Russia.

5. MONEYVAL Updates

Mutual Evaluation of Latvia

The Council of Europe – MONEYVAL Plenary adopted Latvia’s mutual evaluation report under the new FATF methodology, marking the start of a new evaluation cycle focusing on effectiveness in mitigating jurisdiction-specific ML/TF/PF risks. The final report will be released in late 2025.

Compliance Enhancing Procedures

Three MONEYVAL members namely Czechia, Georgia and the Slovak Republic, are currently undergoing Compliance Enhancing Procedures due to moderate shortcomings in one core FATF Recommendation. They reaffirmed their commitment and will report back in December 2025.

6. Strategic Guidance and Publications
The FATF approved several upcoming reports and tools to bolster AML/CFT implementation globally namely:

• Updated Guidance on Financial Inclusion: Offers examples for applying simplified due diligence where risks are lower and addresses challenges linked to de-risking.
• National Risk Assessment Toolkit: A new resource to assist countries in tailoring risk-based approaches to their specific threats.
• Assessment Methodology Revisions: Aligned with the revised Recommendation 1, placing greater emphasis on effectiveness and proportionality in applying the risk-based approach.
• Report on Proliferation Financing and Sanctions Evasion: Examines complex illicit financing schemes, updating existing guidance.
• Global Terrorist Financing Risk Assessment: The most comprehensive assessment to date, with input from over 80 jurisdictions, highlighting current and emerging TF threats and trends.
• 6th Targeted Update on Virtual Assets: Will assess the implementation of FATF’s Standards for Virtual Asset Service Providers (VASPs).
• Civil Society Protection Procedures: New mechanisms to ensure AML/CFT measures do not inhibit legitimate non-profit organization (NPO) activity or create unintended consequences.

7. Global Collaboration and Support Initiatives
To enhance global effectiveness in combating money laundering, the FATF has approved new resources and guidance aimed at improving cross-border collaboration on detection, investigation, and prosecution. These materials were developed in partnership with key international bodies including the Egmont Group, Interpol and the UN Office on Drugs and Crime (UNODC).

These resources provide practical tools and frameworks to support national authorities, particularly FIUs, law enforcement and prosecutors, in sharing information, coordinating actions and pursuing complex money laundering networks that operate across jurisdictions.

By endorsing this guidance, the FATF reinforces its ongoing commitment to fostering operational cooperation and ensuring jurisdictions are better equipped to tackle transnational financial crime.

What This Means for Regulated Entities

Following the latest updates from the FATF, MONEYVAL and the European Commission, cleversoft has revised its jurisdictional risk matrix to reflect evolving international assessments of AML/CFT risks.

While Bolivia and the British Virgin Islands have been added to the FATF’s list of jurisdictions under increased monitoring, both were already classified as high-risk in our model. As such, their risk scores remain unchanged.

In parallel, Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela were newly added to the European Commission’s list of high-risk third countries. However, these jurisdictions were also already classified as High Risk in cleversoft’s model due to other established criteria and remain unchanged in our assessment.

Conversely, several jurisdictions have been downgraded in risk due to significant improvements in their AML/CFT frameworks and subsequent removal from FATF or EU high-risk lists. These include Barbados, Croatia, Jamaica, Senegal and the United Arab Emirates, which have been reassessed from High to Medium Risk.

These adjustments are now reflected across relevant cleversoft compliance products ensuring your screening logic remain aligned with the most current jurisdictional risks.

We advise regulated entities to:

• Update internal risk assessments and onboarding procedures where relevant.
• Continue applying enhanced due diligence for jurisdictions under increased monitoring or subject to FATF countermeasures.
• Prepare for forthcoming changes to cross-border payment data under the revised Recommendation 16.
• Align policies with the FATF’s continued focus on proliferation financing, financial inclusion, and the risk-based approach.

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Source: Outcomes Joint FATF-MONEYVAL Plenary, 12-13 June 2025

Source: Commission updates list of high-risk countries to strengthen international fight against financial crime – European Commission