FATF: Iraq and Bosnia & Herzegovina on Grey List as Algeria and Namibia Removed

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The Financial Action Task Force (FATF) has added Iraq and Bosnia and Herzegovina to its list of jurisdictions under increased monitoring, commonly known as the “grey list,” following its June 2026 plenary.

Both countries have made high-level commitments to work with the FATF and their respective regional bodies to strengthen their anti-money laundering (AML) and combating the financing of terrorism (CFT) regimes.

Iraq’s action plan includes improving its understanding of financial crime risks, detecting informal money-transfer services, establishing a legal framework for virtual asset service providers, and increasing money laundering and terrorist financing investigations. Authorities must also improve suspicious transaction reporting, beneficial ownership measures, and controls designed to prevent sanctions evasion.

Bosnia and Herzegovina is expected to strengthen AML/CFT supervision, improve access to accurate beneficial ownership information, and increase money laundering investigations and prosecutions. 

Iraq previously appeared on the grey list between 2013 and 2018. Its return could create additional challenges as the new government seeks to attract foreign investment and combat corruption. An IMF working paper estimated that grey-listing has historically been associated with an average decline in capital inflows equivalent to 7.6% of GDP.

Meanwhile, Algeria and Namibia have been removed from the grey list after strengthening their AML/CFT regimes to meet their FATF action plan commitments. 

The FATF stressed that grey-listing does not in itself require enhanced due diligence or the cutting off of entire classes of customers. Institutions are advised to apply a proportionate, risk-based approach.