Global Watchlist Update: RBI Flags FATF High-Risk Jurisdictions for June 2025

Image Source: Fincrime Central

The Reserve Bank of India has issued a fresh advisory following the Financial Action Task Force (FATF) Plenary held on June 12–13, 2025, spotlighting jurisdictions with strategic deficiencies in antimoney laundering and counterterrorist financing frameworks.

Key developments from the FATF update:

Highrisk jurisdictions subject to a call for action include North Korea (DPRK), Iran, and Myanmar. These countries face enhanced due diligence and countermeasures due to persistent noncompliance.
Iran remains flagged for failing to enact key conventions and continues to pose terrorist financing risks.
Myanmar’s lack of progress on its action plan may trigger countermeasures by October 2025.
Jurisdictions under increased monitoring now include Algeria, Bolivia, Lebanon, Nigeria, and Vietnam, among others.
Croatia, Mali, and Tanzania have been removed from the increased monitoring list, reflecting improved compliance.

The RBI urges financial institutions to apply stricter scrutiny when dealing with entities from these jurisdictions.

Sources: FATF, Reserve Bank of India, IFSCA, TaxGuru, MachBank