FATF June 2026: Iraq and Bosnia and Herzegovina added to grey list — Algeria and Namibia removed

In brief

• What: Outcomes of the sixth FATF Plenary (17–19 June 2026, Paris): grey list change, update to Recommendation 6 and a new consultation on Recommendation 16.
• Who issues it: Financial Action Task Force (FATF), Paris.
• Status / timing: Outcomes published — list update in force from 19 June 2026.

What changes

The FATF grey list (jurisdictions under increased monitoring) was updated on 19 June 2026. Iraq and Bosnia and Herzegovina were added. Algeria and Namibia were removed — both countries successfully completed their action plans and passed on-site verification visits. Following these changes, the grey list now covers 22 jurisdictions in total. The black list (High-Risk Jurisdictions Subject to a Call for Action) remains unchanged: Iran, North Korea (DPRK), Myanmar.

Alongside the list update, FATF adopted a change to Recommendation 6 on targeted financial sanctions. The change introduces a humanitarian exemption consistent with UN Security Council Resolutions 2664 and 2761. A public consultation was also approved on guidance implementing the strengthened cross-border payment transparency standard (Recommendation 16). The mutual evaluation reports (MER) of Canada and Türkiye were adopted — their publication is planned for late 2026.

The meeting concluded the term of the Mexican Presidency held by Elisa de Anda Madrazo. From 1 July 2026 Giles Thomson (United Kingdom) becomes FATF President, with Vivek Aggarwal (India) as Vice-President.

Who is affected

FATF list changes are formally addressed to regulators, FIUs and governments of all member jurisdictions. The direct consequences are felt by financial institutions required to apply enhanced due diligence (EDD) to customers and transactions linked to grey- or black-list jurisdictions. The new Canada and Türkiye MERs will directly affect their respective regulators and financial sectors.

What it means for non-financial firms

Changes to the FATF grey list do not impose new obligations directly on non-financial firms, but they are a significant signal for any firm subject to a sanction screening obligation.

Iraq and Bosnia and Herzegovina have been placed on the increased-monitoring list — this means that country risk-assessment systems built by financial institutions and supervisors will treat these jurisdictions as requiring particular attention. In practice: if you run a tourism business or real-estate brokerage, serve customers from these countries, or transfer funds there, your correspondent bank or financial counterparty may tighten verification requirements. Law and tax firms and accounting firms serving clients linked to these jurisdictions should update their risk matrices.

The removal of Algeria and Namibia from the grey list is good news for firms with counterparties there — jurisdiction risk formally drops.

The update to Recommendation 6 with a humanitarian exemption (UNSCR 2664 and 2761) is relevant above all to entities operating in humanitarian aid and the delivery of goods to sanctioned countries — an important topic for non-governmental organisations and firms carrying out deliveries in conflict zones.

What’s next

The full outcomes of the meeting are available in: Outcomes FATF Plenary, 17-19 June 2026. The detailed list of the 22 jurisdictions under increased monitoring: Jurisdictions under Increased Monitoring - 19 June 2026. The Recommendation 16 consultation — deadline and submission method to be announced by FATF. Expect publication of the Canada and Türkiye MERs in late 2026.