The Revolutionary Armed Forces of Colombia (FARC), which battled the government for half a century in a conflict that left some 260,000 people dead, reached a historic peace deal last year and its former leader now plans to run for president.
The decision to remove FARC from the list permanently comes after the EU suspended its terror listing in September 2016 in a bid to help the peace process in Colombia.
After agreeing to the peace deal and disarming, the rebels transformed their movement into a political party, keeping the same initials but changing the official name to the Common Alternative Revolutionary Force.
Rodrigo Londono, 58, the group's guerilla leader better known by his nickname "Timochenko", will run in the presidential election for the party, with the first round of voting scheduled for May 2018.
FARC's demobilisation has also triggered battles over territory it used to control, the Organization of American States warned last week, particularly areas linked to the drug trade.
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