The Financial Action Task Force (FATF) published its latest statement on jurisdictions under increased monitoring on 13 February 2026. This update is a significant development for global anti-money laundering (AML) and counter-terrorist financing (CFT) compliance frameworks.
What Is the FATF “Increased Monitoring” List?
The FATF “Increased Monitoring” list, commonly known as the “grey list,” highlights countries with strategic deficiencies in their AML/CFT regimes. These deficiencies may include gaps in legal frameworks, enforcement, or operational measures needed to combat money laundering and terrorist financing effectively.
Key Points:
- Placement on the grey list does not automatically lead to sanctions or blacklisting.
- It signals that the jurisdiction is committed to addressing AML/CFT weaknesses.
- FATF members and regulated entities should incorporate this list into their risk assessments and due diligence procedures.
Key Changes in the February 2026 FATF Monitoring List
The February 2026 FATF update identifies several jurisdictions whose AML/CFT reforms are under close review. These include:
- Algeria, Angola, Bolivia, Bulgaria
- Cameroon, Côte d’Ivoire, Democratic Republic of the Congo
- Haiti, Kenya, Lao PDR, Lebanon
- Monaco, Namibia, Nepal, South Sudan
- Venezuela, Vietnam, Virgin Islands (UK), Yemen
Significance:
- These jurisdictions are encouraged to cooperate with FATF and implement agreed-upon action plans.
- The designation prompts financial institutions and other obligated entities to exercise enhanced vigilance when dealing with transactions linked to these countries.
Implications for Compliance and Risk Management
For financial institutions, law firms, and regulated entities, the FATF grey list is a critical tool for managing AML/CFT risks:
Risk Assessment
- Jurisdictional risk remains a core component of AML/CFT risk profiles.
- The inclusion on the grey list indicates potential shortcomings in AML/CFT frameworks that require attention.
Due Diligence Measures
- While not mandating blanket restrictions, FATF recommends enhanced due diligence (EDD) for transactions involving grey-listed jurisdictions.
- EDD techniques may include expanded source-of-funds checks or beneficial ownership inquiries.
Ongoing Monitoring
- The FATF reviews its grey list several times annually during plenary meetings.
- Compliance programs should incorporate regular updates and adapt internal policies accordingly.
The Role of the FATF and the February 2026 Plenary Meeting
The February 2026 update follows the FATF Plenary held in Mexico City from 11–13 February 2026. During this meeting, members discussed global illicit finance risks and strategies to strengthen AML/CFT cooperation across more than 200 jurisdictions worldwide.
Best Practices for Staying Compliant with FATF Standards
To align with FATF expectations, organizations should:
- Regularly update AML/CFT risk matrices to reflect the latest grey list.
- Implement a risk-based approach with increased scrutiny for transactions involving monitored jurisdictions.
- Document how country risks influence onboarding and ongoing customer due diligence.
- Train compliance teams to understand the implications of FATF listings.
How We Can Support Your AML/CFT Compliance
At Andria Papageorgiou Law Firm, we assist organizations in adapting their AML/CFT frameworks to evolving international standards. Our services include:
- Interpreting FATF updates and integrating them into risk assessments
- Revising internal AML/CFT policies and procedures
- Conducting enhanced due diligence training
- Advising on the regulatory implications of cross-border transactions with grey-listed jurisdictions
Contact us today for expert assistance in reviewing and strengthening your AML/CFT compliance program in light of the February 2026 FATF update.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered legal advice. Andria Papageorgiou Law Firm is not responsible for actions taken based on this information.
