Compliance
FATF (Financial Action Task Force)
Definition
The Financial Action Task Force (FATF) is the intergovernmental body that sets the global standards for combating money laundering, terrorist financing and proliferation financing, known as the FATF Recommendations, and checks how well countries apply them through peer reviews called mutual evaluations. It was set up by the G7 in Paris in 1989.
After each of its three plenaries a year, in February, June and October, FATF updates two public lists: high-risk jurisdictions subject to a call for action, informally the black list, and jurisdictions under increased monitoring, the grey list. After the June 2026 plenary, held from 17 to 19 June, the black list was unchanged at the Democratic People's Republic of Korea, Iran and Myanmar. Bosnia and Herzegovina and Iraq were added to the grey list and Algeria and Namibia removed, leaving 22 jurisdictions under increased monitoring. The lists can change at every plenary, so compliance teams check them after each one.
Key takeaways
- FATF sets the international AML and counter-terrorist financing standards and assesses countries against them through mutual evaluations.
- Its black list (call for action) and grey list (increased monitoring) are updated after plenaries in February, June and October.
- After June 2026 the black list was North Korea, Iran and Myanmar; the grey list held 22 jurisdictions after two additions and two removals.
- Since 30 June 2026, UK rules require automatic enhanced due diligence only for black list countries, though grey listing remains a risk factor.
Why it matters
FATF does not regulate gambling operators directly, but its standards flow into national law and its lists flow into every operator's country risk assessment. Casinos are among the businesses the FATF Recommendations expect countries to bring under AML rules, which is why licensed operators in most regulated markets run customer due diligence, transaction monitoring and suspicious activity reporting programmes.
The lists have direct operational effects. Players, affiliates, suppliers and shareholders connected with black-listed jurisdictions trigger enhanced due diligence and, often, outright refusal. In Great Britain, amendments to the Money Laundering Regulations that took effect on 30 June 2026 narrowed the automatic enhanced due diligence requirement to countries on FATF's call for action list rather than both lists. The Gambling Commission reminded casinos that grey list status, other FATF assessments and wider geographic risk must still feed their risk-based approach.
Grey listing also matters commercially. Banks and payment providers tend to apply extra scrutiny to grey-listed jurisdictions, which can affect licensing hubs, payment routes and where suppliers base their entities. FATF also sets standards that reach gambling payments indirectly, such as the travel rule for crypto-asset transfers. The AML and Financial Crime course explains how FATF standards translate into operator controls.
FATF (Financial Action Task Force) vs OFAC sanctions
| FATF (Financial Action Task Force) | OFAC sanctions |
|---|---|
| FATF lists identify jurisdictions with strategic AML weaknesses. They call for enhanced due diligence or countermeasures, applied through national law, rather than prohibiting business by themselves. | OFAC sanctions are legally binding US prohibitions on dealing with named countries, entities and individuals, enforced with penalties. |
A grey-listed country is a risk factor to manage; a sanctioned party is a legal stop. Compliance programmes need separate controls for each and should not treat one list as a substitute for the other.
The bottom line
FATF writes the global AML standards and publishes the black and grey lists that drive country risk ratings. For gambling operators, the lists determine where enhanced due diligence and refusals apply, and they need checking after every plenary in February, June and October.
Sources
- Readout: Financial Action Task Force's June 2026 Working Group and Plenary - U.S. Department of the Treasury
- Upcoming changes to The Money Laundering Regulations 2017 - Gambling Commission
- FATF plenary June 2026: Grey list changes, a payment transparency consultation, and the incoming UK Presidency - ComplyAdvantage
- Changes to the Money Laundering and Terrorist Financing Regulations 2026 now in effect - ICAEW
Frequently asked questions
What is the FATF grey list?
The grey list is FATF's list of jurisdictions under increased monitoring. These countries have strategic weaknesses in their AML and counter-terrorist financing regimes but have committed to an action plan to fix them within agreed timeframes. After the June 2026 plenary it contained 22 jurisdictions. Being grey-listed is not a sanction, but it usually leads to extra scrutiny from banks and regulated businesses.
Which countries are on the FATF black list?
After the June 2026 plenary, FATF's list of high-risk jurisdictions subject to a call for action contained the Democratic People's Republic of Korea, Iran and Myanmar, unchanged from the previous update. FATF reviews the list at each plenary in February, June and October, so it should always be checked against FATF's latest publication.
FATF grey list vs black list: what is the difference?
The black list, formally high-risk jurisdictions subject to a call for action, covers countries with serious deficiencies where FATF calls for enhanced due diligence and, in the most serious cases, countermeasures. The grey list, formally jurisdictions under increased monitoring, covers countries actively working with FATF to address weaknesses. Black listing has far more severe consequences.
Can gambling operators accept players from grey-listed countries?
FATF listing does not by itself ban business, so it depends on national law, licence conditions and the operator's own risk appetite. Most operators treat grey-listed countries as higher risk and apply stronger checks. In Great Britain, since 30 June 2026, enhanced due diligence is mandatory for black list countries, while grey listing remains a factor in risk assessment.