The European Commission has updated its list of high-risk third-country jurisdictions in an effort to combat global money laundering and terrorist financing. Countries including Kenya, Algeria, Angola, and Côte d’Ivoire were newly added to the list, joining a group that the EU deems to have strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) frameworks.
The revised list, which comes as part of ongoing efforts to safeguard the integrity of the European financial system, also saw the removal of several countries including Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates. The move reflects progress in those jurisdictions towards strengthening their financial regulatory environments.
“Identifying and listing high-risk jurisdictions remains a crucial tool to safeguard the integrity of the EU’s financial system,” said Mairead McGuinness, EU Commissioner for Financial Services, Financial Stability and Capital Markets Union. “We trust the co-legislators will move swiftly to endorse this important step.”
The update has direct implications for financial institutions operating within the EU. Under the EU’s anti-money laundering directive, firms must apply enhanced due diligence when engaging in financial transactions involving high-risk countries. These measures include additional checks on clients, stricter monitoring of transactions, and comprehensive risk assessments.
According to the Commission, this increased scrutiny is necessary to mitigate risks posed by jurisdictions with inadequate AML/CFT controls. The goal is to prevent the EU’s financial system from being misused for criminal or terrorist activities.
The list is updated in alignment with the work of the Financial Action Task Force (FATF), the global standard-setting body for AML/CFT efforts. The Commission cited FATF’s “Jurisdictions under Increased Monitoring” as a basis for its decisions.
Who’s In and Who’s Out
Newly added jurisdictions include:
Kenya, Algeria, Angola, Côte d’Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal, Venezuela.
Removed jurisdictions:
Barbados, Gibraltar, Jamaica, Panama, Philippines, Senegal, Uganda, United Arab Emirates
This reshuffle underscores the dynamic nature of international financial oversight, where countries can be added or removed based on their progress or deterioration in implementing global AML/CFT standards.
The European Commission emphasised that the decision was based on “a thorough technical assessment” and a defined methodology. The evaluation incorporated insights gathered from the FATF, bilateral dialogues with governments, and on-site inspections.
The update is made under Article 9 of the 4th Anti-money Laundering Directive (4AMLD), which mandates the European Commission to maintain an updated list of high-risk countries. The changes will be formalised through a delegated regulation and will come into force one month after being reviewed by the European Parliament and Council—unless an extension is required.
The inclusion of Kenya and other emerging markets could impact foreign direct investment and international banking relationships. Financial institutions and businesses in the EU may face higher compliance costs when dealing with these jurisdictions, and some investors might reconsider operations involving these countries due to increased regulatory risks.
However, EU officials insist that being listed is not a punishment but a call to action. “The Commission is closely involved in helping listed countries implement reforms to meet international standards,” the statement noted.
As a founding member of FATF, the EU continues to promote the adoption of global AML/CFT measures, encouraging listed jurisdictions to cooperate and commit to timelines for necessary reforms. Financial institutions are advised to update their compliance protocols to reflect the changes. The Commission will continue to monitor each jurisdiction’s progress and revise the list as necessary.
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