European Union Enhances Anti-Money Laundering and Countering the Financing of Terrorism Measures
The European Commission has published a series of delegated regulations aimed at strengthening the fight against money laundering and terrorist financing in the European Union.
Regulation Details
The latest regulation, COMMISSION DELEGATED REGULATION (EU) 2023/2070, was adopted on August 18, 2023, and entered into force on September 28, 2023. This regulation supplements Directive (EU) 2015/849 by identifying high-risk third countries with strategic deficiencies in their anti-money laundering and countering the financing of terrorism regimes.
High-Risk Third Countries
The regulation identifies 27 high-risk third countries that pose significant threats to the financial system of the European Union. These countries are divided into three categories:
Category I: High-Risk Third Countries with Written Commitment and Action Plan
- Afghanistan
- Barbados
- Burkina Faso
- Cameroon
- Cayman Islands
- Democratic Republic of the Congo
- Gibraltar
- Haiti
- Jamaica
- Jordan
- Mali
- Mozambique
- Myanmar
- Nigeria
- Panama
- Philippines
- Senegal
- South Africa
- South Sudan
- Syria
- Tanzania
- Trinidad and Tobago
- Uganda
- United Arab Emirates
- Vanuatu
- Vietnam
- Yemen
Category II: High-Risk Third Countries Seeking Technical Assistance
- Iran (identified by FATF Public Statement)
Category III: High-Risk Third Countries with Ongoing Risks
- Democratic People’s Republic of Korea (DPRK) (repeatedly failed to address identified deficiencies and identified by FATF Public Statement)
Regulation Goals
The regulation aims to ensure that financial institutions and other entities operating within the European Union take adequate measures to prevent money laundering and terrorist financing. It also requires them to conduct enhanced due diligence on customers and transactions linked to high-risk third countries.
Commission Spokesperson Quote
“This regulation is a crucial step in our efforts to combat money laundering and terrorist financing,” said a Commission spokesperson. “By identifying high-risk third countries, we can ensure that financial institutions operating within the European Union take adequate measures to prevent these illegal activities.”
Next Steps
The Commission will continue to monitor the progress of these high-risk third countries in addressing their strategic deficiencies and will take further action as necessary.
Note: The regulation is part of a broader effort to strengthen anti-money laundering and countering the financing of terrorism measures across the region.