Brussels: Europe and the Arabs
The European Commission has updated its list of high-risk jurisdictions with strategic deficiencies in their national anti-money laundering and counter-terrorist financing (AML/CFT) systems. EU entities covered by the AML framework are required to apply heightened vigilance to transactions involving these jurisdictions. This is crucial to protecting the EU financial system. According to a European statement issued in Brussels on Tuesday, the Commission said, "A number of countries with non-member jurisdictions have been added to the list (Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela), while others have been removed (Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates).
The updated list takes into account the work of the Financial Action Task Force (FATF), in particular its list of "countries with jurisdictions under increased surveillance." As a founding member of the Financial Action Task Force (FATF), the Commission is closely involved in monitoring the progress of listed countries and assisting them in fully implementing their action plans agreed with the FATF. Alignment with the FATF is crucial to supporting the EU's commitment to promoting and implementing global standards.
The Commission carefully considered the concerns expressed regarding its previous proposal and conducted a comprehensive technical assessment, based on specific criteria and a clearly defined methodology, incorporating information gathered through the FATF and bilateral dialogues. and field visits to the countries concerned.
Article 9 of the Fourth Anti-Money Laundering Directive (4AMLD) requires the Commission to regularly update the list of high-risk jurisdictions. The updated list takes the legal form of a delegated regulation, which enters into force after review and non-objection by the European Parliament and the Council within one month (which can be extended for a further month).
María Luís Albuquerque, Commissioner for Financial Services, Savings and Investments, said, "Identifying and listing high-risk jurisdictions is a fundamental tool for protecting the integrity of the EU financial system. Following a comprehensive technical assessment and carefully listening to the concerns expressed regarding its latest proposal, the Commission has now presented an update to the EU list, which confirms our firm commitment to aligning with international standards, particularly those set by the Financial Action Task Force (FATF). We are confident that participating legislators will swiftly adopt this important step."