The Financial Action Task Force (FATF) has reaffirmed its designation of Iran and the Democratic People's Republic of Korea (DPRK) as high-risk jurisdictions, urging countries worldwide to maintain robust measures to protect the international financial system from money laundering, terrorist financing and proliferation financing risks.
In its latest update, the Paris-based global anti-money laundering watchdog said both jurisdictions continue to have significant strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.
For North Korea, the FATF expressed ongoing concern over the country's failure to address longstanding deficiencies in its AML/CFT regime, as well as risks linked to the financing of weapons of mass destruction programmes.
The organization reiterated its call for countries to terminate correspondent banking relationships with DPRK banks, close overseas branches and subsidiaries, and limit financial dealings with North Korean entities and individuals.
Iran also remains subject to FATF countermeasures after failing to fully complete its action plan, which was first agreed in 2016. While the FATF acknowledged Iran's continued engagement and recent updates regarding international conventions related to organized crime and terrorist financing, it concluded that substantial deficiencies remain unresolved.
Meanwhile, Myanmar remains on the FATF's list of jurisdictions subject to enhanced due diligence rather than full countermeasures. The watchdog noted some progress in strengthening anti-money laundering enforcement and international cooperation but said significant work remains.
FATF also drew attention to the continued prevalence of fraud and cyber scam operations in Myanmar, including activities linked to online gambling and organized criminal networks. The organization urged authorities to take further action to address illicit financial risks while ensuring that legitimate humanitarian assistance and remittance flows are not unnecessarily disrupted.
The FATF said it will continue monitoring progress in all three jurisdictions and assess whether additional measures are necessary in future review cycles.
The FATF's high-risk jurisdictions list is often referred to as the global anti-money laundering "black list"
