Financial Crime World

EU Sanctions List Updates 2023: Gibraltar Among High-Risk Jurisdictions

The European Commission has recently updated its list of high-risk third countries in relation to anti-money laundering and counter-terrorism financing (AML/CFT) regimes. The latest update includes several jurisdictions that have been identified as having strategic deficiencies in their AML/CFT frameworks.

Key Updates

  • Gibraltar: Added to the list effective from March 16, 2023
  • Democratic Republic of the Congo
  • Mozambique
  • Nigeria
  • South Africa
  • Tanzania
  • United Arab Emirates

Methodology for Identifying High-Risk Countries

The Commission has developed a methodology for identifying high-risk countries based on faults in their national AML/CTF regimes. The methodology aims to ensure a fair and transparent process for the identification of third countries that pose significant threats to the EU’s financial system.

Objectives of the List

  • Protecting the integrity of the Union’s financial system
  • Reinforcing internal security
  • Promoting sustainable development

Listing Process

The listing process follows a staged approach, which involves:

  1. Pre-assessment: Initial evaluation of a country’s AML/CFT regime
  2. Assessment: In-depth examination of a country’s AML/CFT framework
  3. Listing: Identification as a high-risk jurisdiction
  4. Monitoring: Ongoing assessment of progress and potential updates to the list