FATF Updates Money Laundering Risk List: Is Indonesia Safe?

The Financial Action Task Force (FATF) has updated its list of countries under high-risk monitoring for money laundering, known as the grey list. The information was published by the Indonesian Financial Transaction Reports and Analysis Centre (PPATK), a member of the FATF. “The Financial Action Task Force (FATF) has officially issued updates to two key public documents concerning global compliance with Anti-Money Laundering, Countering the Financing of Terrorism, and Countering the Financing of Proliferation of Weapons of Mass Destruction (AML/CFT/CPF) standards,” according to information on the PPATK website on Tuesday (14/7/2026). The updated documents cover the list of high-risk jurisdictions subject to a call for action, known as the blacklist, and jurisdictions under increased monitoring, known as the grey list. “This publication serves as a crucial reference for the global financial services sector in implementing a risk-based approach and mitigation measures such as Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD),” the PPATK report stated. In the June 2026 update, the FATF stated there were no changes to the blacklist. North Korea, Iran, and Myanmar remain on this list. The FATF reiterated that North Korea poses a serious threat to the international financial system, particularly regarding proliferation financing risks. Countries are urged to continue applying countermeasures, including severing correspondent relationships with North Korean banks and restricting transactions with individuals from the country. For Iran, despite cooperation efforts, the FATF assessed that the country has not completed most of its Action Plan since 2016. The FATF urged the application of countermeasures such as prohibiting the establishment of new financial institution branches and restricting virtual asset transactions. Meanwhile, Myanmar remains under strict monitoring with an obligation to apply EDD. The FATF warned that countermeasures will be considered if no significant progress is made by October 2026. The composition of the grey list has changed, with Bosnia and Herzegovina and Iraq added as new entries. PPATK noted these two countries were included after evaluations revealed strategic weaknesses, despite their high-level political commitment to implement reforms through an agreed Action Plan. Conversely, the FATF officially removed Algeria and Namibia from the grey list. This decision followed on-site visits confirming both countries had completed their Action Plans and demonstrated sustainable reform implementation. The current grey list comprises 22 jurisdictions. Regarding Indonesia, the FATF Plenary and Working Groups Meetings last month affirmed the country’s commitment to strengthening its regime for combating money laundering, terrorism financing, and proliferation financing. Indonesia became a full FATF member in October 2023 and is scheduled to undergo its first Mutual Evaluation in 2029/2030.