The European Union (EU) has published a list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.
The EU added a number of third-country jurisdictions to the list released on Tuesday, June 10, including Kenya.
Several third-country jurisdictions were added to the list, including Algeria, Angola, Côte d’Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.
Other jurisdictions were delisted, including Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and the United Arab Emirates (UAE).
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, said EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving these countries.
Albuquerque said the move is important to protect the EU financial system.
“Identifying and listing high-risk jurisdictions remains a crucial tool to safeguard the integrity of the EU’s financial system. Following a thorough technical assessment and after listening carefully to the concerns expressed around its last proposal, the Commission has now presented an update to the EU list which reiterates our strong commitment to aligning with international standards, particularly those set by the FATF. We trust that the co-legislators will move swiftly to endorse this important step,” Albuquerque said.
FATF and Commission’s Role
He explained that the updated list takes into account the work of the Financial Action Task Force (FATF) and in particular its list of “Jurisdictions under Increased Monitoring”.
She said the Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with FAFT as a founding member.
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Albuquerque stated that the alignment with FATF is important for upholding the EU´s commitment to promoting and implementing global standards.
The Commission has carefully considered the concerns expressed 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.
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European Union Anti-Money Laundering Directive
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 enter into force after scrutiny and non-objection of the European Parliament and the Council within one month.
However, this can be extended for another month.
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