CL-2026-017: Financial Action Task Force (FATF) Publications – 13 February 2026

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OFFICE OF THE DEPUTY GOVERNOR I FINANCIAL SUPERVISION SECTOR CIRCULAR LETTER NO. CL-2026- To : All BSP-Supervised Financial Institutions (BSFIs) Subject : Financial Action Task Force (FATF) Publications – 13 February 2026 This is to inform all BSFIs of the FATF publications issued last 13 February 2026 on: (i) high-risk jurisdictions subject to a call for action1 ; (ii) jurisdictions under increased monitoring2 ; and (iii) statement on the Russian Federation3 .

1. High Risk Jurisdictions subject to a Call for Action
   For all countries identified as high risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence (EDD), and in the most serious cases, apply countermeasures to protect the international financial system from the money laundering (ML), terrorist financing (TF), and proliferation financing (PF) risks emanating from the country. Given heightened PF risks, the FATF reiterates its call to apply countermeasures on these high-risk jurisdictions.

• Jurisdictions subject to a FATF call on its members and other jurisdictions to apply
  countermeasures a. Democratic People’s Republic of Korea (DPRK) – The FATF has continually reiterated since 2011 the need for all countries to robustly implement the targeted financial sanctions in accordance with United Nations Security Council Resolutions (UNSCR) and apply the following countermeasures to protect their financial systems from the ML/TF/PF threat emanating from DPRK: (i) terminate correspondent relationships with DPRK banks; (ii) close any subsidiaries or branches of DPRK banks in their countries; and (iii) limit business relationships & financial transactions with DPRK persons. The FATF also urges countries to adequately assess and account for the increased PF risk with the greater financial connectivity reported, particularly since the next round of assessments requires countries to adequately assess PF risks under Recommendation 1 and Immediate Outcome 11. b. Iran – In January 2026, Iran provided an update to the FATF on its ratification of the United Nations Convention against Transnational Organized Crime (Palermo Convention) and United Nations Convention for the Suppression of the Financing of Terrorism (TF Convention). While the FATF takes note of Iran’s submission and engagement, the FATF assesses that the reservations Iran has made to the Palermo and TF Conventions are overly broad and that Iran’s domestic compliance with these Conventions is not in line with the FATF standards. The FATF also notes Iran has failed to address the majority of its action plan since 2016. Considering the UNSCR related to Iran’s lack of compliance with its nuclear non￾proliferation obligations, the FATF reminds all jurisdictions of their obligations under the FATF standards to address PF risks emanating from Iran. Additionally, given the ongoing TF and PF threats emanating from Iran and as Iran’s action plan remains 1 Previously called “Public Statement”; often externally referred to as the “blacklist”; FATF Statement remains unchanged since June 2024 (DPRK) and February 2025 (Myanmar). The FATF has updated its public statement on Iran.: https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored-jurisdictions/Call￾for-action-february-2026.html 2 Previously called “Improving Global AML/CFT Compliance: On-going process”; often externally referred as the “grey list”:https://www.fatf-gafi.org/content/fatf-gafi/en/publications/High-risk-and-other-monitored￾jurisdictions/increased-monitoring-february-2026.html 3 Outcomes Joint FATF-MONEYVAL Plenary, 11-13 February 2026:
  https://www.fatf-gafi.org/content/fatf-gafi/en/publications/Fatfgeneral/outcomes-FATF-plenary-february￾2026.html; The suspension of the Russian Federation continues to stand (see February 2024 statement:
  https://www.fatf-gafi.org/en/publications/Fatfgeneral/fatf-statement-russian-federation-feb-2024.html

incomplete, the FATF reiterates its call on its members and urges all jurisdictions to apply effective countermeasures on Iran. When applying countermeasures, countries should ensure that flows of funds involving humanitarian assistance, food and health supplies, diplomatic operating costs, and personal remittances are appropriately handled on a risk basis considering the TF or PF risks emanating from Iran, in line with international obligations.

• Jurisdiction subject to a FATF call on its members and other jurisdictions to apply EDD
  measures proportionate to the risks arising from the jurisdiction Myanmar The FATF calls on its members and other jurisdictions to apply EDD measures proportionate to the risk arising from Myanmar. The FATF requires that as part of EDD, financial institutions should increase the degree and nature of monitoring of the business relationship, in order to determine whether those transactions or activities appear unusual or suspicious. When applying EDD measures, countries should ensure that flows of funds for humanitarian assistance, legitimate Non-Profit Organization activity and remittances are neither disrupted nor discouraged.

2. Jurisdictions under Increased Monitoring
   These countries are actively working with the FATF and have committed to resolve swiftly the identified strategic deficiencies in their regimes to counter ML/TF/PF within agreed timeframes. New jurisdictions added to the list are Kuwait and Papua New Guinea. The FATF does not call for the application of EDD measures to these jurisdictions but encourages its members and all jurisdictions to take into account the information presented in their risk analysis.
3. Statement on Russian Federation
   The suspension of the membership of the Russian Federation continues to stand. Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the Russian Federation in order to protect the international financial system. Copies of the aforementioned FATF publications may be viewed and downloaded from the FATF website (www.fatf-gafi.org). BSFIs are likewise directed to regularly refer to the FATF’s website for the latest statements on high risk and other monitored jurisdictions and consider the same in their risk analysis and mitigation strategies. For guidance and strict compliance. LYN I. JAVIER Deputy Governor 26__ March 2026