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EU Cracks Down on Dirty Money with Global Anti-Money Laundering Efforts
The European Union (EU) has taken significant steps to combat the global circulation of dirty money by identifying high-risk countries that pose a threat to its financial system and internal market. The EU’s anti-money laundering (AML) and counter-terrorism financing (CFT) regulations are designed to protect the integrity of the financial system and promote sustainable development.
How the EU Identifies High-Risk Countries
The EU’s listing process for high-risk third countries follows a staged approach, which includes:
- Pre-assessment
- Assessment
- Listing
- Monitoring
The Commission has developed a methodology to identify these high-risk countries based on faults in their national AML/CFT regimes that pose significant threats to the EU’s financial system.
New Delegated Regulation and List of High-Risk Countries
As of December 12, 2023, the European Commission adopted a new Delegated Regulation identifying jurisdictions with strategic deficiencies in their AML/CFT regimes. The list includes:
- Afghanistan
- Barbados
- Burkina Faso
- Cameroon
- Democratic Republic of the Congo
- And several other countries
Objectives and International Cooperation
The listing process aims to:
- Protect the integrity of the EU’s financial system and internal market
- Reinforce internal security
- Promote sustainable development
The Commission works closely with international partners, including:
- The Financial Action Task Force (FATF)
- Moneyval
- Egmont Group
to combat money laundering and terrorist financing.
Requirements for Gatekeepers and Financial Institutions
Under the 5th Anti-Money Laundering Directive, gatekeepers such as banks are required to conduct increased checks and control measures for business relationships and transactions involving high-risk third countries. The EU’s AML/CFT regulations also require financial institutions to identify and report suspicious transactions.
Ongoing Analysis and Regular Updates
The Commission has identified 132 jurisdictions that will be further analyzed over the period 2018-2025. The list of 132 countries included in the scope will be updated regularly based on new information and assessments.
For more information on the EU’s anti-money laundering and counter-terrorism financing regulations, please visit the European Commission’s website.