Brussels: The European Commission has announced an update to its list of high-risk jurisdictions that present strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. EU entities under the AML framework are required to exercise enhanced vigilance in transactions that involve these countries, a measure aimed at safeguarding the EU financial system.
According to Cyprus News Agency, the updated list now includes several new jurisdictions: Algeria, Angola, C´te d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela. Meanwhile, other jurisdictions have been removed from the list, including Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.
The update reflects the ongoing work of the Financial Action Task Force (FATF), particularly its list of ‘Jurisdictions under Increased Monitoring’. As a founding member of FATF, the European Commission remains actively involved in monitoring the progress of the listed jurisdictions, assisting them in fully implementing their action plans in coordination with FATF. This alignment is crucial for maintaining the EU’s commitment to promoting and implementing global standards.
The Commission’s decision followed a thorough technical assessment, which included addressing concerns raised regarding previous proposals. The assessment was based on specific criteria and a well-defined methodology, incorporating information gathered from FATF, bilateral dialogues, and on-site visits to the relevant jurisdictions.
Article 9 of the 4th Anti-money Laundering Directive (4AMLD) mandates the European Commission to regularly update the list of high-risk third-country jurisdictions. The updated list will take the form of a delegated regulation, which will become effective after a period of scrutiny and non-objection by the European Parliament and the Council, within one month, extendable by another month if necessary.
The European Commission emphasizes the importance of identifying and listing high-risk jurisdictions as a fundamental tool to protect the integrity of the EU’s financial system. Commissioner Maria Lus Albuquerque of Financial Services and the Savings and Investments Union expressed confidence that co-legislators will act swiftly to endorse this update, reflecting the EU’s dedication to aligning with international standards, especially those established by FATF.