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FATF Update February 2026 Plenary: Key Highlights
On 13th February, the Financial Action Task Force published the outcomes of its February 2026 Plenary, including updates to jurisdictions under increased monitoring, commonly referred to as the grey list. The FATF update follows the October 2025 review cycle and reflects FATF’s latest assessment of technical compliance and effectiveness across AML and CFT frameworks.
As of February 2026:
The following developments emerged as the most consequential outcomes of the Plenary discussions:
In the article below, we break down what has changed and the action steps regulated firms must take immediately:
When the FATF places a country under increased monitoring, it identifies deficiencies in the jurisdiction’s framework to combat money laundering, terrorist financing, and proliferation financing. The country commits to an agreed action plan with defined timelines.
Although increased monitoring is not as bad as a sanction, financial markets treat it as a risk indicator. Global banks typically respond by recalibrating country risk rating, strengthening enhanced due diligence, and reviewing correspondent banking exposure. Multinational firms often reassess their onboarding protocols and transaction monitoring thresholds in response. For regulated entities, the announcement requires immediate attention and documented analysis.
FATF’s International Cooperation Review Group evaluates jurisdictions based on:
The recent FATF update confirms that the following jurisdictions have been added to the grey list:
According to the February 2026 Plenary outcomes, FATF identified deficiencies in areas such as beneficial ownership transparency, supervisory effectiveness, sanctions implementation, financial intelligence unit capability, and enforcement metrics. In recent years, many jurisdictions have undertaken significant legislative reform, and these developments are visible and often commendable.
Under the recent FATF update, the following countries were added/remain on the list of jurisdictions under increased monitoring:
February 2026 outcomes reinforce a direction that has been building for several evaluation cycles. In this cycle, the FATF appears to be emphasising:
The release of an updated grey list should trigger a structured internal review.
Within the first 30 days, regulated firms should:
Anyone who has followed the FATF cycles over the past decade will recognise the pattern. The language is careful, but expectations are not. This FATF update reinforces a supervisory climate that is increasingly empirical. The global AML framework has moved beyond policy declarations. Sanctions controls must function consistently. Investigators must progress beyond initial announcements. Institutions that treat FATF updates as important events will be better positioned to demonstrate governance maturity and regulatory compliance.
Arjun is the Co-founder and CEO of Citadel, where he leads the company’s vision across technology, business, and regulations. He brings over a decade of experience in building and scaling technology ventures. Arjun holds a B.Tech. in Information Technology and a Master’s in Management, supported by his certification as a Financial Crime Specialist, an uncommon combination that allows him to balance innovation with regulatory requirements.
Having advised leading banks and financial institutions on digital solutions and compliance technology, Citadel continues to grow with an ambition.
