ANTI MONEY LAUNDERING COUNTRY BLACKLIST PUBLISHED BY EU
The European Commission adopted a list of countries that has weak anti money laundering and terrorist financing regimes, and urged banks to increase customer due diligence (CDD) checks on customers and firms from the blacklisted states following an in depth analysis based on the criteria set by fifth anti-money laundering Directive.
The criteria for assessments included, the level of existing threat, the legal framework and controls put in place to prevent money laundering and terrorist financing risks and their effective implementation and also the work of the Financial Action Task Force (FATF), a global anti-money laundering body. Now banks and other entities covered by EU anti-money laundering rules will be required to do customer due diligence on financial operations involving customers and financial institutions from these high-risk third countries to better identify any suspicious money flows. The Commission concluded that 23 countries have strategic deficiencies in their anti-money laundering/ counter terrorist financing regimes. The 23 blacklisted jurisdictions are Afghanistan, American Samoa, The Bahamas, Botswana, Democratic People’s Republic of Korea, Ethiopia, Ghana, Guam, Iran, Iraq, Libya, Nigeria, Pakistan, Panama, Puerto Rico, Samoa, Saudi Arabia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, US Virgin Islands, and Yemen.
Date: 15 Feb 2019