Niger’s AML/CFT Regulations: EU’s Latest Update
The European Union has updated its list of high-risk countries that pose significant threats to the integrity of its financial system and internal market. The latest update includes Nigeria among several other jurisdictions identified as having strategic deficiencies in their anti-money laundering (AML) and counter-terrorism financing (CFT) regimes.
Why is the EU updating its list?
The European Union’s listing is based on recommendations from the Financial Action Task Force (FATF), a global standard-setter on AML/CFT. The Commission has identified 132 jurisdictions that will be assessed over the period 2018-2025, with Nigeria being one of them. The assessment will focus on countries’ AML/CFT regimes and their potential impact on the EU’s financial system.
Objectives of the List
The objectives of the list are threefold:
- Protect the integrity of the Union’s financial system and internal market
- Reinforce internal security
- Promote sustainable development
Listing Process
The listing process follows a staged approach that involves pre-assessment, assessment, listing, and monitoring.
Criteria for Inclusion
According to the Commission’s methodology, countries are considered relevant for the EU financial system if they meet certain criteria, including:
- Being identified by the European External Action Service or Europol as having a systemic impact on the integrity of the EU financial system
- Having significant economic ties with the EU and a large financial sector
Nigeria meets this criterion due to its economic ties with the EU and the magnitude of its financial sector.
Legal Basis for Listing
The Commission’s power to identify high-risk third countries is based on Directive (EU) 2015/849, which empowers it to adopt delegated acts regarding such countries. The latest delegated act was adopted in December 2023 and includes Nigeria among several other jurisdictions identified as having strategic deficiencies in their AML/CFT regimes.
Importance of the List
The EU’s listing of high-risk third countries is an important step in protecting its financial system from money laundering and terrorist financing. The Commission will continue to monitor the progress of listed countries and assess additional countries to ensure a fair and transparent process.
Additional Information
For more information on the methodology used by the Commission, please visit [insert link].