The European Commission has updated its list of high-risk jurisdictions that show strategic deficiencies in their national anti-money laundering and counter-terrorism financing (AML/CFT) regimes. EU entities covered by the AML framework must exercise enhanced vigilance in transactions involving these countries. This is crucial for safeguarding the EU financial system.
A number of third-country jurisdictions have been added to the list (Algeria, Angola, Côte dIvoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela), while others have been delisted (Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates).
The updated list reflects the work of the Financial Action Task Force (FATF), particularly its list of “Jurisdictions under Increased Monitoring.” As a founding member of the FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions, assisting them in fully implementing their respective action plans agreed with the FATF. Alignment with the FATF is vital for maintaining the EUs commitment to promoting and implementing global standards.
The Commission has carefully considered the concerns raised regarding its previous proposal and conducted a thorough technical assessment based on specific criteria and a well-defined methodology, incorporating information collected through the FATF, bilateral dialogues, and on-site visits to the jurisdictions in question.
Article 9 of the 4th Anti-Money Laundering Directive (4AMLD) mandates the Commission to regularly update the list of high-risk third-country jurisdictions. The update of the list takes the legal form of a delegated regulation, which will come into effect after scrutiny and non-objection by the European Parliament and the Council within a period of one month (which can be extended for another month).
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