Financial Crime World

EU Updates List of High-Risk Countries for Anti-Money Laundering

The European Commission has adopted a new Delegated Regulation identifying jurisdictions that have strategic deficiencies in their anti-money laundering (AML) and counter-terrorism financing (CTF) regimes.

High-Risk Third Countries

A total of 23 countries have been listed as high-risk third countries due to their strategic deficiencies in AML/CTF regimes. These countries are:

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

Listing Process

The Commission’s list is aimed at protecting the integrity of the EU financial system and internal market, reinforcing internal security, and promoting sustainable development. The listing process involves a staged approach, including pre-assessment, assessment, listing, and monitoring of high-risk third countries.

How the List is Updated

  • The list will evolve based on new information and assessments.
  • Priority 1 countries are reviewed as a matter of priority, with reassessments occurring when new relevant information becomes available.
  • The assessment process for Priority 2 countries continues until 2025.

Methodology

The Commission developed a methodology in 2020 to identify high-risk countries based on faults in their national AML/CTF regimes posing significant threats to the EU’s financial system. This includes:

  1. Assessing relevant countries
  2. Identifying priority levels
  3. Evaluating the effectiveness of their AML/CTF frameworks

The European Commission is a member of the Financial Action Task Force (FATF), an observer in Moneyval, and an observer at the Egmont Group. These organizations provide financial intelligence units with a platform for secure exchange of expertise and financial intelligence to combat money laundering, terrorist financing, and associated predicate offences.