Description
SEBI communication regarding FATF's October 2025 Plenary statements on jurisdictions with AML/CFT deficiencies. Burkina Faso, Mozambique, Nigeria and South Africa removed from increased monitoring list.
Summary
BSE has communicated SEBI’s update regarding the Financial Action Task Force (FATF) October 2025 Plenary statements on jurisdictions with strategic Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) deficiencies. Importantly, no new jurisdictions were added to the increased monitoring list, and four countries - Burkina Faso, Mozambique, Nigeria and South Africa - have been removed from FATF increased monitoring. Members are required to take note for necessary compliance actions.
Key Points
- FATF released Public Statements following the October 2025 Plenary session
- No new jurisdictions identified for increased monitoring
- Four countries removed from increased monitoring: Burkina Faso, Mozambique, Nigeria and South Africa
- Public statements available on FATF website covering high-risk jurisdictions and jurisdictions under increased monitoring
- Members must review and implement necessary compliance measures
Regulatory Changes
FATF has updated its lists of jurisdictions subject to enhanced due diligence requirements:
Removals from Increased Monitoring:
- Burkina Faso
- Mozambique
- Nigeria
- South Africa
These jurisdictions are no longer subject to FATF’s increased monitoring framework, indicating improvement in their AML/CFT systems.
No New Additions: FATF did not identify any new jurisdictions for increased monitoring during this review cycle.
Compliance Requirements
For BSE Members:
Review FATF Public Statements: Access and review the official FATF documents at:
- Call for Action (High-Risk Jurisdictions): https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-october-2025.html
- Increased Monitoring Jurisdictions: https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-october-2025.html
Update Due Diligence Procedures: Adjust customer due diligence and enhanced due diligence requirements for entities and transactions involving the updated jurisdiction lists
Transaction Monitoring: Review and update transaction monitoring systems to reflect the removal of the four jurisdictions from enhanced monitoring
Documentation: Maintain records of compliance measures taken in response to this circular
Training: Ensure compliance teams are aware of the updated FATF lists
Important Dates
- Notice Date: November 10, 2025
- Notice Number: 20251110-17
- FATF Plenary: October 2025
- Effective Date: Immediate compliance required
Impact Assessment
Market Impact: Medium - The removal of four countries from FATF’s increased monitoring list may facilitate smoother cross-border transactions and reduce compliance burdens for transactions involving these jurisdictions.
Operational Impact: Medium - Members need to:
- Update internal AML/CFT policies and procedures
- Revise risk assessment frameworks for the affected jurisdictions
- Potentially reduce enhanced due diligence requirements for clients from removed jurisdictions
- Adjust transaction monitoring parameters
Compliance Impact: Positive - The removal of these jurisdictions from increased monitoring indicates reduced risk levels, potentially lowering compliance costs for transactions with entities from Burkina Faso, Mozambique, Nigeria, and South Africa.
Contact Information:
- Phone: 022-69158540, 022-45720640, 022-45720440
- Email: Bse.inspection@bseindia.com
- Issued by: Kaustubh Mundada (Asst. General Manager, Member Oversight) and Kalpesh Ganger (Manager, Member Oversight)
Impact Justification
Regulatory compliance update on international AML/CFT monitoring affecting due diligence requirements for cross-border transactions