European Commission adopts new list of third countries with weak anti-money laundering and terrorist financing regimes

This article is brought to you in association with the European Commission.


Today, the Commission has adopted its new list of 23 third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

The aim of this list is to protect the EU financial system by better preventing money laundering and terrorist financing risks. As a result of the listing, banks and other entities covered by EU anti-money laundering rules will be required to apply increased checks (due diligence) on financial operations involving customers and financial institutions from these high-risk third countries to better identify any suspicious money flows. On the basis of a new methodology, which reflects the stricter criteria of the 5th anti-money laundering directive in force since July 2018, the list has been established following an in-depth analysis. 

Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: “We have established the strongest anti-money laundering standards in the world, but we have to make sure that dirty money from other countries does not find its way to our financial system. Dirty money is the lifeblood of organised crime and terrorism. I invite the countries listed to remedy their deficiencies swiftly. The Commission stands ready to work closely with them to address these issues in our mutual interest. ”   

The Commission is mandated to carry out an autonomous assessment and identify the high-risk third countries under the Fourth and Fifth Anti-Money Laundering Directives.

The list has been established on the basis of an analysis of 54 priority jurisdictions, which was prepared by the Commission in consultation with the Member States and made public on 13 November 2018. The countries assessed meet at least one of the following criteria:

  •          they have systemic impact on the integrity of the EU financial system,
  •          they are reviewed by the International Monetary Fund as international offshore financial centres;
  •          they have economic relevance and strong economic ties with the EU.

For each country, the Commission assessed the level of existing threat, the legal framework and controls put in place to prevent money laundering and terrorist financing risks and their effective implementation. The Commission also took into account the work of the Financial Action Task Force (FATF), the international standard-setter in this field.

The Commission concluded that 23 countries have strategic deficiencies in their anti-money laundering/ counter terrorist financing regimes. This includes 12 countries listed by the Financial Action Task Force and 11 additional jurisdictions. Some of the countries listed today are already on the current EU list, which includes 16 countries.

Next steps

The Commission adopted the list in the form of a Delegated Regulation. It will now be submitted to the European Parliament and Council for approval within one month (with a possible one-month extension). Once approved, the Delegated Regulation will be published in the Official Journal and will enter into force 20 days after its publication.

The Commission will continue its engagement with the countries identified as having strategic deficiencies in the present Delegated Regulation and will further engage especially on the delisting criteria. This list enables the countries concerned to better identify the areas for improvement in order to pave the way for a possible delisting once strategic deficiencies are addressed.

The Commission will follow up on progress made by listed countries, continue monitoring those reviewed and start assessing additional countries, in line with its published methodology. The Commission will update this list accordingly. It will also reflect on further strengthening its methodology where needed in light of experience gained, with a view to ensuring effective identification of high-risk third countries and the necessary follow-up.

Background

The fight against money laundering and terrorist financing is a priority for the Juncker Commission. The adoption of the Fourth – in force since June 2015- and the Fifth Anti-Money Laundering Directives – in force since 9 July 2018 – has considerably strengthened the EU regulatory framework.

Following the entry into force of the Fourth Anti-Money Laundering Directive in 2015, the Commission published a first EU list of high-risk third countries based on the assessment of the Financial Action Task Force. The Fifth Anti-Money Laundering Directive broadened the criteria for the identification of high-risk third countries, including notably the availability of information on the beneficial owners of companies and legal arrangements. This will help better address risks stemming from the setting up of shell companies and opaque structures which may be used by criminals and terrorists to hide the real beneficiaries of a transaction (including for tax evasion purposes). The Commission developed its own methodology to identify high-risk countries, which relies on information from the Financial Action Task Force, complemented by its own expertise and other sources such as Europol. The result is a more ambitious approach for identifying countries with deficiencies posing risks to the EU financial system. The decision to list any previously unlisted country reflects the current assessment of the risks in accordance with the new methodology. It does not mean the situation has deteriorated since the list was last updated.

The new list published today replaces the one currently in place since July 2018.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

France sneaks into the Geneva US-Iran talks to claim its business share in Tehran

Modern humanitarian aid at times of global crises

Eurozone: Inflation plunge to 0.4% in July may trigger cataclysmic developments

Portugal: Budget MEPs back €4.66 m in job-search aid for 730 redundant workers

Central Africa Republic: Violence drives thousands of refugees into neighbouring DR Congo, says UN agency

How the powerful science of behaviour change can make us healthier

Egypt: The road to hell paved with western advices for democracy

Activist Greta Thunberg gets preview of UNHQ ahead of climate summit

Online platforms required by law to be more transparent with EU businesses

Monday’s Daily Brief: numbers of hungry people rising, millions of children need vaccines, Mali children need more protection

Parliament criticises Council’s rejection of money laundering blacklist

Negative inflation hits Eurozone, ECB to print and distribute one trillion euro earlier than expected

Improve collection of data on disasters, Secretary-General Guterres urges

Parliament pushes for cleaner cars on EU roads by 2030

Nicaragua crisis: One year in, more than 60,000 have fled, seeking refuge

The essence of care is cosmopolitan

Major UN aid operation for 650,000 gets underway across Syria-Jordan border

Commerce is on the cusp of radical change. Is your organization ready?

Recession: the best argument for growth

Aviation Strategy for Europe: Commission signs landmark aviation agreements with China

Digital distrust: We’re losing faith in technology to solve the world’s problems

Logo Mania: A call to action to our crisis of connection

Snowden is the “EU nomination” for this year’s Oscars

A Sting Exclusive: Towards better business opportunities for the EU and its neighbours, Commissioner Hahn live from European Business Summit 2015

Nitrate pollution of water sources: new impulses for EU Water Policy?

International trade statistics: trends in first quarter 2019

Bankers don’t go to jail because they are more equal than us all

The world’s coastal cities are going under. Here’s how some are fighting back

Austerity ends in Eurozone, Germany is isolated

This is how travel hotspots are fighting back against overtourism

ECOFIN: Choosing between the re-unification of Eurozone and a stalemate

An Easter Special: Social protection of migrants in Europe as seen through the eyes of European youth

Amidst high trade tensions and policy uncertainty, UN cuts economic growth forecast

‘12 million’ stateless people globally, warns UNHCR chief in call to States for decisive action

EU integration: MEPs want to end permanent opt-outs from EU law

COP24: Huge untapped potential in greener construction, says UN environment agency

A major win for transgender rights: UN health agency drops ‘gender identity disorder’, as official diagnosis

One Hundred Years of Qipao History: from Shanghai to EU

Chart of the day: This is what violence does to a nation’s GDP

UNIDO promotes post-harvest excellence for mangoes in the Mekong River Delta of Viet Nam

Commission criticised member states on blocking financial transaction tax

LGBTQI+ and medicine: are we prepared to deliver dignified and non-discriminatory health care?

Why exchange programs are essential for the medical students of the 21st century

GSMA Mobile 360 – Digital Societies in Kuala Lumpur, in association with The European Sting

Six children among 53 confirmed fatalities after Libya detention centre airstrikes: Security Council condemns attack

As Saudi women take the wheel, UN chief hopes end of driving ban creates more opportunities for kingdom’s women and girls

Fleeing Venezuela: MEPs to probe humanitarian conditions in Colombia and Brazil

Robots aren’t stealing all our jobs, says the World Bank’s chief economist

When will Eurozone’s unemployment rate stop being Europe’s worst nightmare?

Elections in Europe: No risks for the EU, leaders readying to face Trump-Brexit

How global tourism can be more sustainable

Brexit negotiations: Can May’s Britain bounce back?

Germany’s fiscal and financial self-destructive policies

Mergers: Commission approves the acquisition of Flybe by Connect Airways, subject to conditions

Further reforms needed for a stronger and more inclusive Argentine economy

Eurozone: Retail sales and inflation point to recession

Blockchain is not a magic bullet for security. Can it be trusted?

AI will drive the societies of the future. Will the governed consent?

Is this a turning point in the fight against slavery?

COP21 Breaking News_08 December: Cities & Regions Launch Major Five-Year Vision to Take Action on Climate Change

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s