Financial Crime World

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Vanuatu Named High-Risk Jurisdiction in EU’s Financial Crime Watchlist

The European Union has listed Vanuatu as one of the high-risk countries for financial crime and terrorism funding, citing strategic deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CFT) regimes.

EU’s Reasons for Listing


According to a recent report by the European Commission, Vanuatu is among 24 jurisdictions identified as having significant threats to the integrity of the EU’s financial system. The listing comes into effect from September 23, 2016, and will require increased checks and control measures by gatekeepers such as banks when dealing with transactions involving high-risk third countries.

FATF Recommendations


The EU’s listing is based on recommendations provided by the Financial Action Task Force (FATF), a global standard-setter on AML/CFT. The Commission has identified jurisdictions that have strategic deficiencies in their regimes to combat money laundering and terrorist financing, and has listed them as high-risk countries.

Other Countries on the List


Other countries named on the list include:

  • Afghanistan
  • Iran
  • North Korea
  • Syria
  • Yemen

Purpose of the Listing


The listing is aimed at protecting the integrity of the EU’s financial system, promoting internal security, and preventing the misuse of the international financial system for illicit purposes.

Methodology for Identifying High-Risk Jurisdictions


The Commission’s methodology for identifying high-risk jurisdictions involves a staged approach that includes:

  • Pre-assessment
  • Assessment
  • Listing
  • Monitoring progress

Call to Action for Vanuatu


Vanuatu’s inclusion on the list is seen as a significant development in the fight against financial crime and terrorism funding. It highlights the importance of robust AML/CFT regimes in preventing the misuse of the international financial system for illicit purposes.

The Commission has called on Vanuatu to address the strategic deficiencies identified in its regime, and to work towards improving its AML/CFT framework. Failure to do so could result in further sanctions and restrictions on transactions involving high-risk countries.