FATF Public Statement - Jurisdictions on Call for Action and Increased Monitoring (February 2026 Plenary)

Description

SEBI has communicated FATF's February 2026 Plenary public statements identifying Kuwait and Papua New Guinea as new jurisdictions subject to increased monitoring for AML/CFT deficiencies.

Summary

NSE has communicated a SEBI directive regarding FATF’s public statements released after the February 2026 Plenary. FATF has updated its list of high-risk jurisdictions as part of ongoing efforts to identify and address strategic AML/CFT (Anti-Money Laundering / Combating the Financing of Terrorism) deficiencies globally. Kuwait and Papua New Guinea have been newly added to the list of jurisdictions subject to increased monitoring.

Key Points

• FATF released updated public statements following its February 2026 Plenary session
• Two new jurisdictions added to increased monitoring list: Kuwait and Papua New Guinea
• SEBI has communicated this update to all exchanges for onward circulation to members
• Members are advised to take necessary actions and ensure compliance
• Members should regularly visit the SEBI website for further updates

Regulatory Changes

FATF has updated its jurisdictional risk classifications:

• Call for Action list: Updated post-February 2026 Plenary (see FATF website for full list)
• Increased Monitoring list: Kuwait and Papua New Guinea are newly identified jurisdictions added to this list

Relevant FATF public statement URLs referenced in the circular:

• Call for Action: https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-february-2026.html
• Increased Monitoring: https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased-monitoring-february-2026.html

Compliance Requirements

• All NSE members must take note of the updated FATF jurisdictional risk classifications
• Members must ensure compliance with applicable AML/CFT obligations with respect to transactions or clients linked to high-risk or monitored jurisdictions
• Members should apply enhanced due diligence (EDD) for transactions involving Kuwait and Papua New Guinea as newly added jurisdictions under increased monitoring
• Members are advised to regularly monitor the SEBI website for future updates on FATF statements

Important Dates

• Circular Date: March 17, 2026
• FATF Plenary: February 2026
• No specific deadline mentioned; compliance is expected immediately upon receipt of circular

Impact Assessment

This circular has a moderate compliance impact on NSE members engaged in cross-border transactions or dealing with clients from the newly identified jurisdictions. Members operating internationally or with foreign clients must update their AML/CFT risk frameworks to reflect the addition of Kuwait and Papua New Guinea to the FATF increased monitoring list. There is no direct impact on domestic trading operations or market structure. The circular is procedural in nature, reinforcing existing regulatory obligations under SEBI’s AML/CFT framework.

Impact Justification

Regulatory compliance circular requiring members to be aware of updated FATF high-risk jurisdictions; operationally important for AML/CFT compliance but does not directly affect trading or market operations.