HM Treasury has issued an updated advisory notice identifying countries that pose significant risks due to inadequate controls against money laundering and terrorist financing activities. The revised list reflects a series of adjustments agreed upon by the Financial Action Task Force (FATF) during its plenary meetings, with updates incorporating changes from their February, June, and October 2023 plenary meetings, as well as further revisions in February, June, and October 2025, and February and June 2026. The latest update sees a total of seven jurisdictions added to the High-Risk Third Countries (HRTCs) list, bringing the current total to 22 countries.
The definition of HRTCs within the Money Laundering Regulations (MLR) remains aligned with the FATF's published lists, ensuring that any changes trigger corresponding updates to the UK's advisory notice. The continuous updating process underscores the dynamic nature of international financial crime risks and the importance of vigilance in maintaining the integrity of the UK's financial system.
UK entities operating in regulated industries must be aware of the revised list and adhere to enhanced due diligence requirements when conducting transactions or establishing business relationships with individuals or entities connected to these high-risk jurisdictions. Failure to comply can result in substantial penalties, estimated at up to £5 million for large businesses, as well as reputational damage.
The existence of the HRTC list highlights the interconnectedness of global financial systems and the persistent threat posed by illicit financial flows. By identifying and publicising these high-risk countries, the UK contributes to creating a more transparent and secure international financial environment, making it increasingly difficult for criminals to launder money or finance terrorism.
This updated guidance serves as a crucial tool in protecting the UK economy from exploitation by criminal organisations and upholding international financial security standards. As part of its ongoing efforts to combat financial crime, HM Treasury will continue to monitor developments and provide regular updates to ensure that UK businesses and financial institutions remain informed and compliant with the latest requirements.