16 Feb Kuwait & Papua New Guinea Added to the FATF Grey List — Implications for AML Risk

Kuwait and Papua New Guinea Added to the FATF Grey List (13 February 2026)

On 13 February 2026, the Financial Action Task Force (FATF) published its latest update to the Jurisdictions under Increased Monitoring — commonly known as the FATF Grey List. In this update, both Kuwait and Papua New Guinea were formally added to the list, signalling that both jurisdictions now face enhanced scrutiny of their anti-money laundering, counter-terrorist financing and proliferation financing frameworks due to identified strategic deficiencies.

The FATF serves as the global standard-setter on financial crime prevention and aims to protect the integrity of the international financial system by ensuring countries adopt effective and robust AML/CFT/CPF regimes. Its Grey List highlights those jurisdictions that have committed to action plans with specific timelines to address weaknesses that could present ML/TF/CPF risks.

What It Means to Be on the FATF Grey List

Being placed on the FATF Grey List does not imply the same level of concern as the “High-Risk Jurisdictions subject to a Call for Action” (sometimes referred to as the black list). Instead, it reflects that a country:

• Has strategic deficiencies in AML/CFT/CPF measures;
• Has committed to work with the FATF and implement an agreed Action Plan to improve compliance; and
• Will be subject to enhanced monitoring until improvements are made.

For financial institutions, compliance teams, and risk officers globally, the inclusion of a jurisdiction on the FATF Grey List should prompt enhanced due diligence and reassessment of risk frameworks relative to customers, counterparties or transactions connected to those countries.

Updated FATF Grey List (as of 13 February 2026)

The following countries and jurisdictions are now under increased FATF monitoring:

1. Algeria
2. Angola
3. Bolivia
4. Bulgaria
5. Cameroon
6. Côte d’Ivoire
7. Democratic Republic of Congo
8. Haiti
9. Kenya
10. Kuwait
11. Laos
12. Lebanon
13. Monaco
14. Namibia
15. Nepal
16. Papua New Guinea
17. South Sudan
18. Syria
19. Venezuela
20. Vietnam
21. Virgin Islands (UK)
22. Yemen

This list reflects jurisdictions judged to have significant strategic AML/CFT/CPF weaknesses that require immediate remedial action and sustained engagement with international regulators.

Spotlight on Kuwait

Kuwait’s addition to the FATF Grey List marks a significant development for a major Gulf financial hub. The FATF’s decision recognises ongoing gaps in Kuwait’s AML/CFT/CPF regime — though the country has committed to strengthening its laws, supervision and enforcement practices through an agreed Action Plan.

Financial institutions and compliance professionals should expect heightened scrutiny and may need to review their client and transaction risk assessments where Kuwait-linked exposure exists.

Spotlight on Papua New Guinea

Papua New Guinea has also been placed on the Grey List after its latest FATF evaluation revealed strategic deficiencies in implementing adequate AML/CFT/CPF frameworks. This is not the first time PNG has faced FATF monitoring, and government leadership has publicly underscored its commitment to addressing the identified issues and exiting the list as soon as possible.

Local leaders, business stakeholders, and international partners will now need to support reforms and strengthen AML/CFT systems in line with FATF expectations.

What Comes Next

Countries on the FATF Grey List remain subject to enhanced monitoring until they fully implement the necessary reforms. Progress is reviewed regularly by the FATF plenary, with jurisdictions expected to meet specific benchmarks.

For organisations operating globally, staying informed of FATF updates such as this FATF Grey List update, is essential for effective risk management, regulatory compliance and robust AML due-diligence programs.

Want to Learn more?

KYC Lookup is a fully accredited AML training provider, delivering comprehensive and up-to-date Anti-Money Laundering courses tailored for regulated firms and compliance professionals worldwide. Our practical, regulator-aligned training programmes help organisations strengthen their AML frameworks and respond effectively to developments such as the latest FATF Grey List update.