Today, the European Commission has formally adopted a list of third countries having strategic deficiencies in their regimes on Anti-Money Laundering (AML) and Countering Terrorist Financing (CFT). This completes the package of stronger transparency rules to tackle terrorism financing and money laundering brought forward last week. Banks will have to carry out additional checks (‘enhanced due diligence measures’) on financial flows from these 11 countries.
Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: “Today’s list is part of our broader drive to tackle terrorism financing and money laundering. We need to cut off terrorists and other criminals from their resources. To put Europe at the forefront of the global fight against money laundering, we have proposed a common European set of stricter checks in relation to financial flows from these countries.”
The Commission proposed on 5 July 2016 to harmonise the list of checks applicable to high-risk countries to prevent loopholes in Europe, where terrorists could run operations through countries with lower levels of protection. The EU will continue to engage across all relevant policy areas with the concerned countries, including through development cooperation, the ultimate goal being their compliance and removal from the list. The list of the Commission will be reviewed at least three times a year, after each Financial Action Task Force meeting assessing the latest developments.
The Delegated Regulation will now be transmitted to the European Parliament and Council who have a one-month period to express objections (extendable to two months). If no objection has been expressed, it will be published in the Official Journal.
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