FATF Grey List Update February 2026: Kuwait and Papua New Guinea Added in FATF Grey List

Executive Summary:

• Removed from Grey List: No Changes
• Added to Grey List: Kuwait and Papua New Guinea
• Blacklist: No change.  

FATF Grey List Update February 2026: Kuwait and Papua New Guinea Added to Grey List

FATF has added Kuwait and Papua New Guinea to the Grey, recognising the need for more robust mechanisms in their AML/CFT/CPF framework.

The Financial Action Task Force (FATF) functions as a global watchdog against the crimes of Money Laundering (ML), Terrorism Financing (TF) and Proliferation Financing (PF). It sets the universally recognised benchmarks that shape Anti-Money Laundering (AML), Couter Terrorism Financing (CTF) and Counter Proliferation Financing (CPF) legislations around the globe.

FATF has announced significant developments in their “Jurisdictions subject to increased monitoring” list, colloquially known as the “FATF Grey List”, post its latest plenary session on 13^th February 2026.

Major Changes in FATF Grey List in February 2026

New revisions made to the FATF Grey List primarily involve the listing of 2 nations and the delisting of no nations.

Newly Listed Countries in FATF’s Grey List on 13^th February 2026

The countries that the FATF has newly listed in the Grey List are:

• Kuwait
• Papua New Guinea

The FATF Grey List as of 13^th February 2026: Jurisdictions Under Increased Monitoring as of 13^th February 2026

The updated FATF Grey List is as follows:

1. Algeria
2. Angola
3. Bolivia
4. Bulgaria
5. Cameroon
6. Cote 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

Essential Action Plan for Tranche 2 Entities After Updates to FATF Grey List Dated 13^th February 2026

Reporting Entities such as Financial Institutions, Bullion Dealers, and Tranche 2 Businesses under Australia’s AML/CFT regime must attentively watch out for the changes in FATF’s Grey List. These changes directly influence how entities assess and manage jurisdictional risk.

The actions Tranche 2 Entities are required to undertake Customer Due Diligence to remain compliant with the FATF’s development, and 2024-25 AML/CFT reforms are as follows:

• Enterprise-Wide Risk Assessment: Review your EWRA and update your ML/TF/PF risk exposure analysis, taking FATF Grey List changes into consideration.
• Internal Policies, Procedures and Control Framework: Realign your AML/CFT/CPF Policies, Procedures and Control framework with revised FATF Grey List.
• Customer Risk Assessment: Reevaluate Customer Risk Assessment for customers from the listed countries and delisted countries.
• Customer Due Diligence :  Customer Due Diligence Measures should be adjusted in line with the updated FATF Grey List. Consider applying Enhanced Due Diligence (EDD) to customers from Kuwait and Papua New Guinea.
• Recalibrate System Controls: Reconfigure AML/CFT Software solutions and monitoring tools to reflect the updated FATF Grey List.