Restricted Countries: How Prop Firms Decide

Every prop firm publishes a list of countries it does not serve, and most lists look alike. They are not copied for no reason: the same sanctions programs, the same FATF statements and the same provider terms drive them. What differs is whether the list is right for your firm, kept current, and actually enforced.

This guide explains where restrictions come from, how to build and maintain the list, and how to disclose and enforce it on the website. It is not legal advice. Sanctions law in particular is strict, and the answer for your firm depends on where you, your owners, your providers and your traders are.

Where do prop firm country restrictions come from?

Prop firm country restrictions come from four sources, and a country can be restricted because of any one of them. The table summarises each, with what we checked in October 2026.

What do the sanctions lists say in 2026?

OFAC's sanctions programs page lists country-related programs including Belarus, Cuba, Iran, North Korea, Russia-related programs, Venezuela-related and others, alongside list-based programs that target people and entities rather than whole countries. Its FAQs add the 50 percent rule: entities owned 50 percent or more by blocked persons are treated as blocked even if not named.

FATF's June 2026 plenary kept the Democratic People's Republic of Korea, Iran and Myanmar as high-risk jurisdictions subject to a call for action, with countermeasures for the first two and enhanced due diligence for Myanmar, according to FINMA's summary of the statement dated 19 June 2026. FATF's separate increased-monitoring list changes at every plenary.

Comprehensive sanctions are usually obvious; the harder cases are regions (for example occupied territories covered by specific programs) and individuals on list-based programs who live in countries you do serve. That is why screening at KYC matters as much as the country list.

How do you build and maintain the list?

Build the restricted-countries list as a single dataset with an owner, a reason for every entry and a review date, then publish and enforce it from that dataset. Firms get into trouble when the terms, the website, the checkout and the KYC provider each hold a different list.

• Start from sanctions: comprehensive programs where you, your owners or your providers are subject to them.
• Add FATF call-for-action jurisdictions and any your banks or processors refuse.
• Add each provider's exclusions: processor, KYC, payout platform, trading platform.
• Add countries your lawyer flags for local rules on trading-related products or their promotion.
• Record the reason and source date for every country.
• Review on a schedule, and immediately when a provider or regulator changes position.

How do prop firms enforce country restrictions?

Prop firms enforce country restrictions at three points: on the website and at checkout (billing country, IP location and declared country), at KYC (document country and sanctions screening), and at payout (payee and wallet or bank screening). Each catches what the others miss.

Checkout enforcement is the one firms skip, and it is the one that prevents the worst outcome: selling an evaluation to someone you will later refuse to pay. That sequence produces a refund at best, and at worst a chargeback and a public complaint. Block it before payment, and explain why on the page the trader sees.

What this means for your website

The restricted-countries page should be easy to find from the footer, the FAQ and checkout, list every country with the date it was last reviewed, and match the list your checkout enforces. Geo-aware pages can tell a visitor from a restricted country, politely and before they try to pay, that you cannot serve them.

PipValley builds this as one data source that drives the public page, the checkout block and the FAQ answer, so the list cannot drift. See the restricted countries and geo feature and the compliance and disclosures feature, or our KYC and AML software guide for the screening side.

Questions

Sources

1. OFAC: Sanctions programs and country information
2. OFAC: Frequently asked questions, basic information (FAQ 11)
3. OFAC: FAQ 91 on the 50 percent rule
4. FINMA: FATF statement on high-risk and other monitored jurisdictions (June 2026)
5. GOV.UK: The UK Sanctions List
6. EU Sanctions Map