# Restricted Countries: How Prop Firms Decide

> Prop firms decide which countries to restrict by combining four sources: sanctions programs such as OFAC's, UK and EU lists; FATF's high-risk jurisdictions; the country exclusions of their payment, KYC and platform providers; and legal advice on local rules for trading-related products. The list should live in one place and be enforced at checkout and KYC, not just printed in the terms.

- Source: https://pipvalley.com/guides/prop-firm-sanctions-and-restricted-countries
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** Prop firms decide which countries to restrict by combining four sources: sanctions programs such as OFAC's, UK and EU lists; FATF's high-risk jurisdictions; the country exclusions of their payment, KYC and platform providers; and legal advice on local rules for trading-related products. The list should live in one place and be enforced at checkout and KYC, not just printed in the terms.

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.

**Sources of prop firm country restrictions (checked October 2026; not legal advice)**

| Source | What it is | Why it reaches a prop firm | Where to check |
|---|---|---|---|
| US sanctions (OFAC) | Country and list-based programs; OFAC says sanctions "can be either comprehensive or selective" | OFAC says "All U.S. persons must comply", and many providers apply OFAC screening whoever their customer is | OFAC sanctions programs page and SDN list |
| UK and EU sanctions | UK Sanctions List; EU restrictive measures | Apply to UK and EU persons and businesses, and to providers based there | GOV.UK UK Sanctions List; EU Sanctions Map |
| FATF statements | High-risk jurisdictions subject to a call for action, plus a list under increased monitoring | Banks and payment providers apply enhanced checks or refuse business | FATF statements, updated at each plenary |
| Provider terms | Country exclusions of your processor, KYC provider, payout platform and trading platform | You cannot sell where you cannot take payment, verify or pay | Each provider's contract and acceptable use policy |
| Local rules on trading-related products | Regulators that treat evaluations or their marketing as regulated activity | Risk of enforcement or of selling an unlawful product | Your lawyer, by market |

## 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.

> Sanctions programs change, sometimes overnight. Check the official sources on the day you update your list, and record the date. This guide is a snapshot from October 2026, not a list to copy.

## 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.

> This guide explains how prop firms generally approach country restrictions. It isn't legal advice. Sanctions obligations depend on your entity, owners, providers and customers; speak to a qualified sanctions lawyer.

## Questions

### Why do prop firms restrict certain countries?

Prop firms restrict countries because of sanctions programs, FATF high-risk statements, the exclusions in their payment, KYC and platform providers' terms, and local rules on trading-related products. A country can be restricted for any one of these reasons.

### Does OFAC apply to a prop firm outside the US?

OFAC says all US persons must comply with its sanctions, wherever they are; a non-US firm can still be affected through US owners, staff, providers or dollar payments, and many providers screen against OFAC lists regardless. Ask a sanctions lawyer how it applies to you.

### Which countries are on the FATF black list?

After the June 2026 plenary, FATF's high-risk jurisdictions subject to a call for action were the Democratic People's Republic of Korea, Iran and Myanmar. The list is reviewed at every plenary, so check the current statement.

### Where should a prop firm publish its restricted countries?

A prop firm should publish its restricted countries on a dedicated page linked from the footer, FAQ and checkout, with a review date, and enforce the same list at checkout and KYC so no one can buy an evaluation they cannot be paid for.

## Sources

- [OFAC: Sanctions programs and country information](https://ofac.treasury.gov/sanctions-programs-and-country-information)
- [OFAC: Frequently asked questions, basic information (FAQ 11)](https://ofac.treasury.gov/faqs/topic/1501)
- [OFAC: FAQ 91 on the 50 percent rule](https://ofac.treasury.gov/faqs/91)
- [FINMA: FATF statement on high-risk and other monitored jurisdictions (June 2026)](https://www.finma.ch/en/news/2026/07/20260714-fatf-statement/)
- [GOV.UK: The UK Sanctions List](https://www.gov.uk/government/publications/the-uk-sanctions-list)
- [EU Sanctions Map](https://www.sanctionsmap.eu/)