In the February 2025 advisory release, the Financial Action Task Force (FATF) continues to highlight significant money laundering (ML), terrorist financing (TF), and proliferation financing (PF) risks associated with North Korea (DPRK), Iran, and Myanmar. 

DPRK and  Iran: High-Risk Jurisdictions Subject to a Call for Action 

Both DPRK and Iran remain classified as high-risk jurisdictions requiring countermeasures. The FATF is particularly concerned about DPRK’s illicit WMD-related activities and its growing connectivity to the international financial system, which raises PF risks. It urges renewed enforcement of financial sanctions in line with United Nations Security Council Resolutions (UNSCRs). 

Similarly, Iran’s non-compliance with its AML/CFT action plan and failure to implement key FATF conventions have led to the continued imposition of countermeasures. The FATF warns of the terrorism financing risks linked to Iran, reinforcing the need for enhanced due diligence (EDD) by financial institutions. 

FIs must: 

• Treat DPRK and Iran as high-risk jurisdictions and apply enhanced due diligence measures. 

• Monitor business relationships and transactions linked to these countries, including their financial institutions and intermediaries. 

• Comply with the Financial Services and Markets (Sanctions and Freezing of Assets) Regulations 2023, ensuring alignment with MAS guidelines. 

Myanmar: Enhanced Due Diligence Required 

Myanmar remains under FATF monitoring, requiring enhanced due diligence proportional to risk exposure. Despite some progress in addressing technical compliance deficiencies regarding targeted financial sanctions related to proliferation financing, the FATF maintains concerns over slow implementation of AML/CFT measures. Therefore, Myanmar will stay on the list of countries subject to FATF’s call for action until it fully implements its action plan. 

Unlike DPRK and Iran, FATF has not called for countermeasures against Myanmar. However, FIs must continue to: 

• Apply enhanced due diligence measures to detect and mitigate risks linked to Myanmar-based transactions. 

• Follow MAS guidance while ensuring that legitimate humanitarian and NPO-related fund flows remain uninterrupted. 

 

WHAT’S NEXT? 

Given ongoing updates to regulatory guidelines, the management of financial institutions should: 

• Stay vigilant and regularly monitor MAS announcements for updates to ensure continued compliance. 

• Continuously refine internal mechanisms for identifying and mitigating AML/CFT risks, in line with FATF and MAS guidelines. 

• Ensure all risk assessments and mitigation measures are thoroughly documented and readily available to MAS upon request. 

 

HOW CAN WE HELP? 

Contact Capital Governance today to discuss how we can support your AML/CFT compliance efforts. Our tailored solutions help financial institutions and businesses: 

• Implement enhanced due diligence frameworks. 

• Strengthen sanctions screening and risk monitoring processes. 

• Ensure full alignment with MAS regulations and FATF recommendations. 

Contact Us Today to discuss how we can support your business in meeting regulatory requirements.