The Financial Action Task Force (FATF) continues to identify key money laundering (ML), terrorist financing (TF), and proliferation financing (PF) threats associated with the Democratic People’s Republic of Korea (DPRK), Iran, and Myanmar in the June 2025 FATF Statement.

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

DPRK and Iran remain classified as high-risk jurisdictions subject to a call for action, requiring financial institutions to apply countermeasures in line with FATF guidance and local regulations.

FIs must:

• Treat DPRK and Iran as high-risk jurisdictions and apply EDD measures.
• Continue complying with the Financial Services and Markets (Sanctions and Freezing of Assets of Persons – Iran) Regulations 2023, with reference to applicable MAS guidance.
• Implement risk-based mitigation measures for any exposures linked to DPRK and Iran.

Myanmar: Enhanced Due Diligence Required

Myanmar remains on the FATF’s list of jurisdictions subject to a call for enhanced due diligence, though no countermeasures have been imposed. Despite limited progress since the expiry of its action plan, Myanmar is expected to continue working on implementation efforts to address identified deficiencies.

FIs must:

• Maintain vigilance and apply enhanced due diligence for customers and transactions involving Myanmar.
• Detect and mitigate risks associated with Myanmar-linked exposures in accordance with MAS guidance.
• Ensure that legitimate fund flows—including humanitarian assistance, NPO activities, and remittances—are not disrupted or discouraged when applying EDD.

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. Find out more here.