The Reserve Bank of India (RBI) released an updated list of high-risk and other monitored jurisdictions as part of the Financial Action Task Force (FATF) review conducted from June 17-19, 2026. The list identifies countries with strategic deficiencies in anti-money laundering and counter-terrorist financing measures, affecting cross-border financial transactions and compliance requirements for Indian banks, according to rbi.org.in.
The FATF plenary held in June assessed jurisdictions worldwide and classified them based on their adherence to international standards. The RBI’s press release on July 16, 2026, details the jurisdictions under increased scrutiny and those subject to monitoring. This update follows FATF’s global evaluations and is intended to guide Indian financial institutions in risk assessment and due diligence processes, the central bank stated.
This update is significant for India’s financial sector as it influences regulatory compliance and correspondent banking relationships. Being on the FATF high-risk list can restrict access to international financial markets and increase transaction costs. The RBI’s alignment with FATF recommendations reflects India’s commitment to strengthening its anti-money laundering framework, similar to measures taken by other major economies following FATF evaluations.
The RBI’s official press release dated July 16, 2026, provides the comprehensive list of jurisdictions and outlines the implications for Indian banks and financial institutions. The document serves as a reference for compliance officers and risk managers to align their operations with the latest international standards.