Planning to register a company in Malaysia with a foreign director, shareholder or investor?
Before preparing your incorporation documents, it is important to check whether any party involved is connected to a country listed by the Financial Action Task Force (FATF).
The FATF updates its list of high-risk and monitored jurisdictions following its Plenary meetings, which are generally held in February, June and October.
Following the FATF Plenary held from 17 to 19 June 2026, two countries were added to the Grey List, while two were removed.
These updates may affect whether Boss Boleh can proceed with your company incorporation.
What Is the FATF?
The Financial Action Task Force, commonly known as FATF, is an international organisation that develops global standards to combat:
• Money laundering
• Terrorist financing
• Proliferation financing
FATF publishes two main lists of jurisdictions with weaknesses in their anti-money-laundering and counter-terrorism-financing systems:
1. Black List – High-Risk Jurisdictions Subject to a Call for Action
2. Grey List – Jurisdictions Under Increased Monitoring
These classifications are considered during customer due diligence, risk assessments, company incorporation and bank account-opening processes.
Black List vs Grey List
These classifications are considered during customer due diligence, risk assessments, company incorporation and bank account-opening processes.
| Catergory | Black List | Grey List |
| Official FATF description | High-Risk Jurisdictions Subject to a Call for Action | Jurisdictions Under Increased Monitoring |
| Risk level | Highest risk | Increased monitoring |
| Main concern | Serious strategic weaknesses in AML/CFT controls | Identified weaknesses that the country has committed to address |
| FATF position | Enhanced due diligence and, in serious cases, countermeasures | Risk should be considered when institutions conduct their assessments |
| Boss Boleh policy | Incorporation cannot proceed | Incorporation cannot proceed |
It is important to understand that FATF itself does not describe Grey List countries as automatically prohibited.
However, businesses connected to these jurisdictions may face practical challenges when opening a Malaysian bank account or completing compliance checks.
For this reason, Boss Boleh does not proceed with incorporations where a proposed director or shareholder falls under either the FATF Black List or Grey List.
FATF Black List as of 19 June 2026
he following three jurisdictions remain on the FATF Black List:
- Iran
- Democratic People’s Republic of Korea, also known as North Korea or DPRK
- Myanmar
Iran and North Korea are subject to the strongest FATF measures, including calls for countermeasures.
Myanmar is also classified as high-risk, although FATF calls for enhanced due diligence rather than full countermeasures.
What this means for incorporation
Boss Boleh will not proceed with an incorporation where a proposed director or shareholder is linked to one of these jurisdictions.
These cases may also encounter serious restrictions involving:
• Bank account opening
• International fund transfers
• Source-of-funds verification
• Sanctions screening
• Regulatory and compliance approval
FATF Grey List as of 19 June 2026
The following 22 jurisdictions are under increased monitoring:
| No. | Jurisdiction | June 2026 status |
| 1 | Angola | Remain listed |
| 2 | Bolivia | Remain listed |
| 3 | Bosnia and Herzegoniva | Added in June 2026 |
| 4 | Bulgaria | Remain listed |
| 5 | Cameroon | Remain listed |
| 6 | Côte d’Ivoire | Remain listed |
| 7 | Democratic Republic of the Congo | Remain listed |
| 8 | Haiti | Remain listed |
| 9 | Iraq | Added in June 2026 |
| 10 | Kenya | Remain listed |
| 11 | Kuwait | Remain listed |
| 12 | Lao PDR | Remain listed |
| 13 | Lebanon | Remain listed |
| 14 | Monaco | Remain listed |
| 15 | Nepal | Remain listed |
| 16 | Papua New Guinea | Remain listed |
| 17 | South Sudan | Remain listed |
| 18 | Syria | Remain listed |
| 19 | Venezuela | Remain listed |
| 20 | Vietnam | Remain listed |
| 21 | Virgin Island | Remain listed |
| 22 | Yemen | Remain listed |
Countries added in June 2026
• Bosnia and Herzegovina
• Iraq
Countries removed in June 2026
• Namibia
• Algeria
Their removal means they are no longer included in the FATF Grey List issued on 19 June 2026
Does being on the Grey List mean a country is banned?
No.
Being placed on the Grey List does not mean that FATF has banned all transactions or business relationships with that jurisdiction.
A Grey List country has identified weaknesses in its anti-money-laundering and counter-terrorism-financing framework but has committed to resolving them through an agreed action plan.
FATF does not automatically instruct all institutions to apply enhanced due diligence solely because a country is Grey Listed. Instead, institutions are expected to consider the country’s risk within their wider risk-based assessment.
However, the practical situation may differ when incorporating a company and opening a bank account in Malaysia.
Banks and professional service providers may impose stricter onboarding requirements or choose not to accept cases connected to Grey List jurisdictions.
Boss Boleh’s Policy on Listed Jurisdictions
Boss Boleh does not proceed with company incorporations where any proposed director or shareholder is connected to a country on the FATF Black List or Grey List.
This policy applies to:
• Proposed shareholders
• All three Black List jurisdictions
• All 22 Grey List jurisdictions
• Proposed directors
Why does Boss Boleh apply this policy?
Even where FATF does not prohibit a Grey List connection, Malaysian banks may make account opening extremely difficult.
A company that cannot open a corporate bank account may be unable to:
• Receive customer payments
• Pay suppliers and employees
• Deposit its share capital
• Manage business expenses
• Conduct normal commercial operations
To avoid clients paying incorporation fees for a company that may later be unable to operate, Boss Boleh treats both Black List and Grey List connections as ineligible under its onboarding policy.
What Connections Should Business Owners Check?
Before starting an incorporation, review whether any proposed director or shareholder is:
• A citizen of a listed jurisdiction
• A resident of a listed jurisdiction
• Using funds originating from a listed jurisdiction
• Subject to international sanctions
• Connected to a high-risk business or financial arrangement
Where there is uncertainty, it is better to check before preparing or signing any incorporation documents.
Can I Proceed if My Customer or Supplier Is from a Listed Country?
Boss Boleh’s incorporation policy primarily focuses on the proposed company’s directors and shareholders.
A customer or supplier relationship may not automatically prevent incorporation.
However, the relationship could still affect:
• Bank onboarding
• Transaction monitoring
• International payments
• Source-of-funds checks
• Ongoing compliance reviews
The risk will depend on the country, transaction type, payment route and business activity involved.
Why Do Company Secretaries and Banks Conduct These Checks?
Company secretaries, banks and other regulated professional service providers must conduct customer due diligence and assess money-laundering and terrorist-financing risks.
These checks may involve:
• Identity verification
• Beneficial ownership checks
• Sanctions screening
• Politically exposed person screening
• Source-of-funds checks
• Source-of-wealth checks
• Business activity assessment
• Country-risk assessment
The purpose is to prevent companies and financial systems from being misused for illegal activities.
The FATF Lists Can Change
The FATF generally updates its public lists after Plenary meetings held in:
• February
• June
• October
A country may be:
• Added to the Grey List
• Removed from the Grey List
• Moved to a higher-risk category
• Subject to revised FATF measures
For example, following the June 2026 Plenary:
• Iraq and Bosnia and Herzegovina were added.
• Algeria and Namibia were removed.
Business owners should therefore avoid relying on an old list when planning an incorporation.
Frequently Asked Questions
Can a person from a Grey List country register a company through Boss Boleh?
Under Boss Boleh’s current policy, we do not proceed where a proposed director or shareholder is connected to a FATF Grey List jurisdiction.
Can someone from Iran, North Korea or Myanmar register through Boss Boleh?
No. These jurisdictions are on the FATF Black List and fall outside Boss Boleh’s incorporation acceptance policy.
Why does Boss Boleh reject Grey List cases when FATF does not ban them?
The policy reflects practical banking and onboarding risks in Malaysia. Even if incorporation were technically possible, the company may face significant difficulty opening a corporate bank account.
What if only my supplier is from a Grey List country?
This does not necessarily prevent incorporation. However, the bank may ask for additional details about the relationship, transactions and payment arrangements.
How often should I check the FATF lists?
Check before starting an incorporation and whenever FATF publishes a new update, generally in February, June and October.
What should I do if I am unsure whether my case is affected?
Speak to Boss Boleh before paying or preparing incorporation documents. Our team can check the latest FATF status and advise whether the case falls within our acceptance policy.
A connection to a FATF-listed jurisdiction can affect company incorporation, compliance checks and corporate bank account opening in Malaysia.
As of 19 June 2026:
• Three jurisdictions remain on the FATF Black List.
• Twenty-two jurisdictions are on the Grey List.
• Iraq and Bosnia and Herzegovina were added.
• Algeria and Namibia were removed.
Boss Boleh does not proceed with an incorporation where a proposed director or shareholder falls under either list.
Checking the latest status early can help you avoid unnecessary costs, delays and unsuccessful applications.
Need help checking whether your proposed company structure is eligible? Contact Boss Boleh before starting the incorporation process.
Sources
- Financial Action Task Force: Jurisdictions Under Increased Monitoring, 19 June 2026
- Financial Action Task Force: High-Risk Jurisdictions Subject to a Call for Action
- FATF Plenary Outcomes, 17–19 June 2026
- The latest corresponding notices and guidance issued by Bank Negara Malaysia should also be reviewed
Disclaimer: This article is intended for general information only and does not constitute legal, financial or compliance advice. FATF country classifications and Boss Boleh’s acceptance policies may change. Please confirm the latest position before proceeding with an incorporation.
Want to know more about starting a Sdn Bhd? What’s the best way to start one, and what should you be mindful of? Register and find out in our upcoming webinar!
Are you ready to form your Sdn Bhd with Malaysia’s #1 award-winning Online Company Secretary? Contact us now via WhatsApp @018-7678055!
1,000+ reviews with a 4.9-star rating on
