By PAUL O’DONOGHUE, Senior Correspondent
THE FATF (Financial Action Task Force) has added Iraq and Bosnia/Herzegovina to its ‘grey list’ of jurisdictions with weak AML regimes, while removing Algeria and Namibia.
The update comes following the conclusion of the FATF June 2026 plenary.
With a population of 48 million people, Iraq is one of the largest countries added to the grey list in recent years. The FATF first added Iraq to the grey list in 2013, removing it in 2018.
Being on the grey list reduces foreign capital inflows by approximately 7.6% of GDP, according to an estimate from the IMF (International Monetary Fund).
The June 2026 meeting also marks the final FATF plenary under Elisa de Anda Madrazo. Giles Thomson, the Director for Economic Crime and Sanctions at the UK’s HM Treasury, will take over at the helm of the body from July.
Iraq and Bosnia/Herzegovina added to FATF grey list
In a statement, Ms de Anda Madrazo said: “On the FATF grey list, the Plenary added Bosnia and Herzegovina.
She said the country must “strengthen its defences against criminals and terrorists abusing its financial system and ensure effective supervision of the banking sector”.
The FATF President added that the plenary also added Iraq to the grey list. She said the country must tackle risks “related to cash, increase money laundering and terrorist financing investigations and enhance the use of financial information.”
“I have received strong political signals from both countries this week that they are committed to making the changes needed to strengthen their defences.”
In addition, she said: “We have removed Algeria and Namibia from the grey list. Algeria made strides in risk-based supervision, beneficial ownership and targeted financial sanctions. Namibia enhanced risk-based supervision to financial and non-financial sectors and increased investigations and prosecutions of serious and complex money laundering.”
Since taking office in May, Iraqi Prime Minister Ali al-Zaidi has said that rebuilding Iraq’s economy, attracting foreign investment, and fighting corruption will be central to his administration’s agenda.
Al-Zaidi is due to visit Washington in July, with the aim of deepening strategic ties with the United States.
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