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EU Lists Myanmar as High-Risk Country for Money Laundering and Terrorism Financing

The European Commission has included Myanmar in its latest list of high-risk countries that have strategic deficiencies in their anti-money laundering (AML) and countering the financing of terrorism (CFT) regimes.

New Delegated Regulation Adopted

According to the EU’s official journal, the new Delegated Regulation was adopted on December 12, 2023, amending the previous regulation. Myanmar has been identified as a high-risk country since October 1, 2020.

High-Risk Countries Identified by the EU

The European Commission has identified several countries with strategic deficiencies in their AML/CFT regimes, including:

  • Afghanistan
  • Barbados
  • Burkina Faso
  • Cameroon
  • Democratic Republic of the Congo
  • Gibraltar
  • Haiti
  • Iran
  • Jamaica
  • Mali
  • Mozambique
  • Nigeria
  • North Korea
  • Panama
  • Philippines
  • Senegal
  • South Africa
  • South Sudan
  • Syria
  • Tanzania
  • Trinidad and Tobago
  • Uganda
  • United Arab Emirates
  • Vanuatu
  • Vietnam
  • Yemen

EU’s Listing Process

The EU’s listing process involves a staged approach with four parts:

  1. Pre-assessment: Determine countries to be assessed.
  2. Assessment: Evaluate the relevant third country’s AML/CFT regimes.
  3. Listing: Identify high-risk third countries that show strategic deficiencies in their AML/CFT regimes.
  4. Monitoring: Track progress of listed countries.

Fair and Transparent Process

To ensure a fair and transparent process, the Commission developed a methodology in 2020. The methodology clarifies the measures to identify high-risk countries based on faults in their national AML/CTF regimes posing significant threats to the EU’s financial system.

Protecting the EU’s Financial System

The European Union has taken steps to protect its financial system and internal market from money laundering and terrorism financing. The listing of high-risk countries aims to prevent financial institutions from conducting business with these jurisdictions, thereby reducing the risks associated with money laundering and terrorism financing.

Continued Monitoring

The Commission will continue to monitor progress in listed countries and assess additional countries to ensure that the EU’s financial system remains safe and secure.

  • European Commission: Financial Action Task Force (FATF)
  • Council of Europe: Moneyval
  • Egmont Group: International Organisation