Financial Action Task Force (FATF) High risk and other monitored jurisdictions – June 17-19, 2026

The Financial Action Task Force (FATF) June 2026 plenary outcomes represent a critical milestone in global anti-money laundering (AML) and counter-terrorist financing (CFT) efforts, with significant implications for India's financial integrity and international standing. Established in 1989 by G7 Ministers, FATF has evolved into the premier inter-governmental body setting global standards for combating money laundering, terrorist financing, and proliferation financing — threats that undermine the integrity of the international financial system. The June 17-19, 2026 plenary, culminating in public statements released on June 19, 2026, continues FATF's rigorous monitoring framework through two distinct lists: 'High-Risk Jurisdictions subject to a Call for Action' (commonly known as the 'blacklist') and 'Jurisdictions under Increased Monitoring' (the 'greylist'). The blacklist remains unchanged with three jurisdictions: Democratic People's Republic of Korea (DPRK) and Iran, both subject to FATF's call for action since February 2020, and Myanmar, added in October 2022 following the military coup and subsequent governance collapse. FATF explicitly advises that enhanced due diligence measures for Myanmar must not disrupt humanitarian assistance, legitimate non-profit organization (NPO) activity, and remittances — a nuanced approach reflecting international humanitarian law obligations. For India, Myanmar's continued blacklisting is particularly significant given the 1,643 km shared border, ongoing refugee flows into Mizoram and Manipur, and cross-border insurgency linkages. India's compliance with FATF standards while maintaining humanitarian corridors demonstrates its commitment to both global norms and regional stability. The greylist witnessed substantive changes: Algeria and Namibia were removed after successfully addressing strategic deficiencies, while Bosnia and Herzegovina and Iraq were added based on the FATF's June 2026 review. The remaining 21 jurisdictions under increased monitoring include several of strategic importance to India — Kenya (Indian Ocean partner), Nepal (immediate neighbor with open border), Syria, Venezuela, Vietnam, Yemen, and others. Nepal's continued presence is especially noteworthy for India, given the 1,770 km open border, deep people-to-people ties, and significant remittance flows. India has consistently supported Nepal's AML/CFT capacity building through technical assistance and information sharing, recognizing that Nepal's vulnerabilities directly impact India's financial security. India's own FATF journey is instructive. After being placed on the greylist in 2010, India undertook comprehensive reforms including the Prevention of Money Laundering Act (PMLA) 2002 amendments (2009, 2012, 2015, 2019), establishment of the Financial Intelligence Unit-India (FIU-IND) under the Ministry of Finance, and alignment with FATF's 40 Recommendations. India's successful exit from the greylist in 2013 and subsequent 'compliant' or 'largely compliant' ratings in its 2024 mutual evaluation underscore its institutional maturity. Constitutionally, India's AML/CFT framework derives authority from Article 246 read with Union List entries (banking, insurance, foreign exchange) and Article 253 (implementation of international treaties). The PMLA, Unlawful Activities (Prevention) Act (UAPA) 1967, and Foreign Exchange Management Act (FEMA) 1999 form the statutory backbone, while the RBI, SEBI, and IRDAI serve as sectoral regulators enforcing KYC/AML norms. The broader significance extends beyond compliance. FATF listings influence sovereign credit ratings, foreign investment flows, correspondent banking relationships, and access to international capital markets. For India, maintaining robust AML/CFT standards enhances its credibility as a responsible global financial actor, supports its G20 leadership aspirations, and strengthens its voice in multilateral forums like the UN, IMF, and World Bank. The RBI's press release 2026-2027/685, issued by Chief General Manager Brij Raj, signals India's proactive dissemination of FATF updates to regulated entities — banks, NBFCs, payment system operators — ensuring domestic compliance with evolving international standards. Looking ahead, several trajectories merit attention. First, FATF's increasing focus on virtual assets and virtual asset service providers (VASPs) — reflected in the 2019 revised Recommendation 15 — will shape India's regulatory approach to cryptocurrencies and fintech. Second, the intersection of AML/CFT with counter-proliferation financing (CPF) gains urgency amid evolving geopolitical tensions. Third, India's neighborhood-first policy necessitates sustained engagement with Nepal, Myanmar, and other regional partners on capacity building. Finally, as FATF prepares for its next round of mutual evaluations (2026-2030 cycle), India must continuously upgrade its risk-based supervision, beneficial ownership transparency, and international cooperation mechanisms to retain its compliant status and leverage it for strategic advantage.