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FATF October 2025 Update: Key Shifts in the Global AML/CFT Landscape
Removal from Monitoring for Four Countries Signals Progress — But High-Risk Jurisdictions Still Demand Vigilance
Bhumika Arora
October 25, 2025
The Riffle
The FATF, the global standard‐setting body in anti-money laundering (AML), counter‐terrorist financing (CFT) and proliferation financing (PF), has released its October 2025 public statement on jurisdictions under “Increased Monitoring” and “High-Risk Jurisdictions subject to a Call for Action.” This update carries real implications for regulated firms, investors and global financial flows.
What’s new?
Four jurisdictions — Burkina Faso, Mozambique, Nigeria and South Africa — have been removed from the FATF’s monitoring list after they completed the action-plans agreed with the FATF.
The “High-Risk Jurisdictions (Call for Action)” list remains in force for jurisdictions with significant strategic deficiencies.
The FATF continues to emphasise that removal from the list does not mean that all risk is eliminated — jurisdictions remain responsible for sustaining reforms.
Why it matters
For financial institutions, corporates and investors, this update is far more than a checklist.
Delisting reduces the reputational and operational burden associated with “grey-list” status — correspondent banking relationships improve, capital flows ease.
But being removed does not relieve stakeholders of vigilance: risk assessments must be updated, internal controls remain vital.
For jurisdictions still on the high‐risk list, the pressure is heightened: firms must apply enhanced due diligence and may face counter-measures if exposures persist.
What should you do?
Review your country risk ratings and update in light of this FATF update.
For clients/counterparties in the four removed jurisdictions, validate whether reform commitments are embedded and reflected in your risk assessments.
For high-risk jurisdictions: ensure your KYC/EDD frameworks clearly reflect the FATF’s statements; apply stricter monitoring and thresholds where needed.
Communicate internally: ensure your compliance, audit and risk teams are aware of the changes and the remaining obligations.
Monitor upcoming FATF plenary outcomes (February 2026) and emerging thematic risks (e.g., crypto, beneficial ownership, AI/deepfakes) which the FATF has flagged.
Regional case study: Africa
The removal of Nigeria and South Africa represents a significant positive signal for the African continent. It reflects that reforms in AML/CFT regimes are being recognised at the highest international level — a factor that may ease funding costs and improve cross-border investment sentiment.
Bottom line
The October 2025 FATF update offers a mixed message: progress in some jurisdictions, but no relaxation in global vigilance. For those in finance, risk, compliance and corporate operations, it underscores the need to stay agile, stay informed and embed proactive change in frameworks.
Read the full briefing document presented by 10 Leaves here -
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