The Financial Action Task Force (FATF), the global standard-setter for anti-money laundering (AML) and counter-terrorism financing (CFT), published its latest Call for Action on June 13, 2025, identifying high-risk jurisdictions that pose significant threats to the international financial system.
This update is part of FATF’s ongoing efforts to safeguard the global economy from illicit financial activities, ensure compliance with international AML/CFT standards, and promote transparency in financial transactions.
High-Risk Jurisdictions Subject to a Call for Action – June 2025
As per the latest FATF public statement, the following countries continue to be classified as high-risk jurisdictions due to their serious strategic deficiencies in AML/CFT measures. FATF urges all its members and other jurisdictions to apply enhanced due diligence (EDD) and, in extreme cases, countermeasures to protect the global financial system.
1. Democratic People’s Republic of Korea (DPRK) – North Korea
The FATF remains gravely concerned about the continuing failure of North Korea to address significant deficiencies in its AML/CFT framework and its continued involvement in illicit financial activities, including those linked to the proliferation of weapons of mass destruction.
FATF has reaffirmed its call on all jurisdictions to apply effective countermeasures to protect the international financial system from the risks posed by DPRK. This includes:
- Closing existing branches, subsidiaries, or representative offices of North Korean financial institutions.
- Terminating correspondent relationships with North Korean banks.
- Applying targeted financial sanctions in accordance with relevant United Nations Security Council Resolutions (UNSCRs).
All countries are advised to prohibit financial institutions from establishing or maintaining correspondent relationships with North Korean banks and to require enhanced scrutiny of transactions involving DPRK.
2. Iran
The FATF has decided to continue its call for countermeasures on Iran as the country has failed to complete its action plan and has not ratified the Palermo Convention and the Terrorist Financing Convention, which are key international agreements aimed at combating organized crime and terrorist financing.
As a result, FATF urges jurisdictions to:
- Implement effective countermeasures to safeguard the international financial system.
- Enhance supervisory examination and monitoring of financial institutions with exposure to Iranian counterparties.
- Require financial institutions to increase scrutiny of transactions involving Iran.
These measures remain in place until Iran completes the necessary steps to strengthen its AML/CFT regime in accordance with FATF standards.
3. Myanmar
The FATF continues to express serious concerns regarding Myanmar’s failure to address strategic deficiencies in its AML/CFT framework. In February 2020, Myanmar committed to an action plan but has since failed to make sufficient progress.
While enhanced due diligence measures remain applicable, the FATF has not yet called for countermeasures against Myanmar. However, the situation continues to be under close review, and FATF has reiterated the need for Myanmar to fully implement its agreed action plan.
Key Actions Required from Jurisdictions
In light of this updated Call for Action, FATF member countries and all other jurisdictions are expected to:
- Implement enhanced due diligence measures when dealing with financial transactions involving these high-risk jurisdictions.
- Consider applying countermeasures where appropriate, particularly in relation to North Korea and Iran.
- Maintain close monitoring of ongoing transactions and business relationships that could expose institutions to AML/CFT risks.
- Take steps to ensure that financial institutions and designated non-financial businesses and professions (DNFBPs) are aware of and comply with these enhanced requirements.
Importance of the FATF Call for Action
The FATF’s public statements serve as a critical guide for governments, financial institutions, and businesses worldwide in identifying and mitigating the risks associated with money laundering, terrorist financing, and proliferation financing.
Failure to comply with FATF’s recommendations can result in:
- Reputational damage.
- Regulatory scrutiny.
- Disruption of correspondent banking relationships.
- Potential sanctions or financial penalties.
The June 2025 update reinforces the importance of ongoing vigilance and proactive compliance with international standards to ensure the integrity of the global financial system.
Conclusion
The FATF Call for Action – June 2025 highlights the persistent global threats posed by North Korea, Iran, and Myanmar due to their significant deficiencies in AML/CFT regimes. Organizations across the globe are urged to apply stringent risk management procedures and ensure that their compliance programs align with FATF recommendations.
By staying informed and responsive to these updates, businesses and financial institutions can not only protect themselves from legal and reputational risks but also contribute to the global fight against financial crime.
