High-risk countries are often identified based on various criteria including their history of political instability, corruption levels, terrorism threats, financial limitations, and their compliance with international laws and regulations, such as anti-money laundering (AML) and counter-terrorism financing (CTF). Businesses and financial institutions often categorize countries into risk levels to assess the risks associated with conducting transactions or entering into partnerships with entities based in these nations. Risk assessment may involve checks against global sanctions lists, money laundering trends, and the country’s overall governance and economic health.