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

the European Sting Milestones

Featured Stings

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

‘Break the cycle’ of disaster-response-recovery, urges top UN official, as death toll mounts from Cyclone Idai

In 2019, ‘reasons for hope’ in a world still on ‘red alert’: UN chief Guterres

The Commission neglects the services sector and favours industry

Healing of ozone layer gives hope for climate action: UN report

European Youth Forum welcomes adoption of Sustainable Development Goals and calls on European countries to not ignore them!

Italy should boost investment in training for the future of work

Are we sleepwalking into a new global crisis?

UK must end ‘unlawful’ administration of Chagos Archipelago ‘as rapidly as possible,’ top UN court rules

JADE President opens JADE Spring Meeting 2014

Leading Palestinian legislator calls for ‘new international engagement’ in two-state solution

Tech must embrace teamwork to transform the world

UN, Egypt help avert another Israel-Palestine war in Gaza that was ‘minutes away’, Security Council hears

Mental health problems costing Europe heavily

How big data can help us fight climate change faster

Health conditions for citizens of Yemen’s key port city ‘remain critical’ says UN agency

Why the World Cup is a bit like international trade

Around 260,000 children in DR Congo’s Kasai region suffering severe acute malnutrition

UN launches new framework to strengthen fight against terrorism

Humanitarian aid convoy to Syria’s Rukban camp: Mission Accomplished

New forms of work: deal on measures boosting workers’ rights

Why education and accountability are important for developing countries?

Intel, Almunia and 1 billion euros for unfair potatoes

Here are the biggest cybercrime trends of 2019

We need new tools for the Big Data era

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

The fat from your next takeaway meal could help clean up global shipping

International Day of Cooperatives sets stage for long-standing production and consumption

UK must make clear what it wants, MEPs say in Brexit debate

Here’s what a Korean boy band can teach us about globalization 4.0

Post-Brexit muddled times: the resignation of UK’s top ambassador and Theresa May’s vague plans

Erasmus+ will finance existing UK-EU mobility in the event of no-deal Brexit

UN agencies call for action to bolster rights of Europe’s stateless children

Berlin’s governing elite leads Eurozone to recession to win the September election in Germany

With field schools in Kenya, UN agriculture agency teaches techniques to combat drought

The Bavarians threaten Berlin and Brussels with immigration crisis

This is the life of a refugee: the constant destruction and construction of dreams every day

The China-US trade deal will be signed on time; the path is set

UN experts urge India to align new anti-trafficking bill with human rights law

IMF: The global economy keeps growing except Eurozone

Africa is ‘on the rise’, says UN chief Guterres, urging collaboration for better future

20th EU-China Summit in Beijing, 16/07/2018

Yanis Varoufakis: “Unsustainable debt turns the creditor into Leviathan; Life under it is becoming nasty, brutish and short”

Libya: ‘Substantial civilian casualties’ in Derna, UN humanitarian chief ‘deeply concerned’

Violence against women a ‘mark of shame’ on our societies, says UN chief on World Day

Civil protection: Parliament strengthens EU disaster response capability

Leaders need hard data to make the hard decisions about sustainability

Is it true that the G20 wants to arrest tax evasion of multinationals?

Why Eurozone urgently needs the ECB to print and distribute at least €500 billion

As the year closes out, UN political chief talks the art of diplomacy – and crises to watch in 2019.

European Commission: the LED lights of your Audi A6 shall save our planet

Brexit: Is there anybody supporting a non-violent separation?

Climate changes and the imminent public health crises

COP21 Paris: The Final Agreement Adopted-full text

EU Banks still get subsidies from impoverished citizens

UN rights experts call on Russia to release Ukrainian film-maker whose life is in ‘imminent danger’

How to unleash the enormous power of global healthcare data

There is a way for Eurozone to reach a sustainable growth path

Can the next financial crisis be avoided?

Businesses can lead a revolution in disability inclusion

UN chief welcomes ‘positive steps’ towards peace between Eritrea and Ethiopia

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