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FATF Adds Iraq and Bosnia to Grey List as Algeria and Namibia Exit

Amir Rizwan JUNE 25, 2026 2 minutes read

The Financial Action Task Force (FATF) has added Iraq and Bosnia and Herzegovina to its grey list of jurisdictions with weak anti-money laundering regimes, while removing Algeria and Namibia. The update followed the conclusion of the FATF’s June plenary in Paris and brings the grey list to 22 jurisdictions.

With a population of around 48 million, Iraq is one of the largest countries added to the list in recent years. It was first grey-listed in 2013 and removed in 2018. Grey-listing carries a real economic cost: the International Monetary Fund has estimated that it reduces foreign capital inflows by roughly 7.6% of GDP.

Why the changes matter for firms

Announcing the decision, FATF President Elisa de Anda Madrazo said Bosnia and Herzegovina must strengthen its defences against criminals and terrorists abusing its financial system and ensure effective supervision of the banking sector. Iraq, she said, needs to address risks linked to cash, increase money laundering and terrorist financing investigations, and make greater use of financial intelligence. She added that both countries had given strong political signals of their commitment to reform.

On the removals, the FATF credited Algeria with progress on risk-based supervision, beneficial ownership and targeted financial sanctions. Namibia was recognised for enhancing risk-based supervision across its financial and non-financial sectors, and for increasing investigations and prosecutions of serious and complex money laundering.

The meeting was the final plenary under de Anda Madrazo’s presidency. Giles Thomson, Director for Economic Crime and Sanctions at the UK’s HM Treasury, takes over the role from July. For financial institutions, the changes feed directly into country risk models, with Iraq and Bosnia and Herzegovina now warranting closer scrutiny and Algeria and Namibia due for reassessment.

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