Two countries just came off FINTRAC's watch list - three others still top the high-risk tier
FINTRAC has told reporting entities to treat every transaction tied to North Korea, Iran or Russia as high-risk, in an advisory refreshed July 15, 2026.
The Financial Transactions and Reports Analysis Centre of Canada issues these advisories after each Financial Action Task Force plenary, flagging jurisdictions whose anti-money laundering and anti-terrorist financing systems it considers deficient. The latest follows the FATF's June 19, 2026 plenary, which produced statements on high-risk jurisdictions subject to a call for action and on jurisdictions under increased monitoring.
For the countries at the top of the list, the obligations are concrete. Acting under section 11.42 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Minister of Finance has directed every person or entity named in section 5 of the Act to treat any transaction originating from or bound for North Korea, Iran or Russia as high-risk, regardless of amount. Firms must verify the identity of anyone requesting or benefiting from such a transaction, exercise customer due diligence with attention to the risk of a sanctions evasion offence - including the source of funds or virtual currency, the purpose of the transaction, and the beneficial ownership or control of the parties - and keep records. Transactions tied to Iran must also be reported to FINTRAC.
The FATF returned to North Korea, or the Democratic People's Republic of Korea, reiterating concerns over its continued failure to fix significant deficiencies in its regime and pointing to the serious threats posed by its illicit activities linked to the proliferation of weapons of mass destruction and their financing.
Iran drew firmer language. The FATF retained its statement from the February 2026 plenary and, building on an October 2025 statement, re-affirmed and strengthened its position while introducing new counter-measures. It cited continued deficiencies in Iran's framework and insufficient progress on a longstanding action plan.
Myanmar sits a step below, in the enhanced due diligence category. Reporting entities are told to weigh the risks of dealing with people and entities based in or connected to Myanmar, decide whether a suspicious transaction report is warranted, and factor geography into their risk assessments.
The advisory also refreshes the FATF "grey list" of jurisdictions under increased monitoring - countries that have agreed action plans to address strategic deficiencies. The list names Angola, Bolivia, the British Virgin Islands, Bosnia and Herzegovina, Bulgaria, Cameroon, Côte d'Ivoire, the Democratic Republic of the Congo, Haiti, Iraq, Kenya, Kuwait, the Lao People's Democratic Republic, Lebanon, Monaco, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam and Yemen. Algeria and Namibia came off the list, a step the FATF takes when a country has made significant progress on the deficiencies identified in its evaluation.
The advisory restates standing duties as well. Reporting entities must file a Listed Person or Entity Property Report without delay when disclosure is required in connection with listed terrorist entities, including the Islamic State and its regional affiliates - a report known as the Terrorist Property Report until March 2, 2025. Since August 19, 2024, firms must also report transactions suspected of being related to sanctions evasion. The advisory carries similar guidance on Afghanistan and on the evolving situation in the Middle East.
The full text of FINTRAC's July 15, 2026 advisory, Financial transactions related to countries identified by the Financial Action Task Force, is available at https://fintrac-canafe.canada.ca/notices-avis/avs/2026-07-15-eng.
