EU Blacklisted Countries for Money Laundering Concerns

Written by Prof. William Byrnes

The European Commission has today put forward a series of measures designed to further strengthen the EU’s framework to fight against money laundering and terrorist financing:

  • An Action Plan for a Comprehensive EU policy on Preventing Money Laundering and Terrorist Financing
  • A refined and more transparent methodology to identify high-risk third countries
  • An updated list of high-risk third countries

To ensure inclusive discussions on the development of these policies, the Commission launched a public consultation today on the Action Plan. Authorities, stakeholders and citizens will have until 29 July to provide their feedback.

EU Blacklisted Countries for Money Laundering 

  1. The Bahamas,
  2. Barbados,
  3. Botswana,
  4. Cambodia,
  5. Ghana,
  6. Jamaica,
  7. Mauritius,
  8. Mongolia,
  9. Myanmar/Burma,
  10. Nicaragua,
  11. Panama,
  12. Uganda, and
  13. Zimbabwe

have strategic deficiencies in their AML/CFT regime, also based on the fact that these countries were identified in the FATF document “Improving Global AML/CFT Compliance: on-going process statement”.

Consequently, the Commission considers that The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama and Zimbabwe meet the criteria set in article 9(2) of Directive (EU) 2015/849. These countries should be added to the list of the Delegated Regulation (EU) 2016/1675 as countries presenting strategic deficiencies in their AML/CFT regime that pose significant threats to the financial system of the Union.

It is further noted that Uganda was also identified by the FATF as having strategic deficiencies in its AML/CFT regime in February 2020. Uganda is already included in the list
of Delegated Regulation (EU) 2016/1675. Therefore, the status and current measures applied with regard to Uganda remain unchanged and the Delegated Regulation (EU) 2016/1675 does not need to be amended in this respect.

The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama, Uganda and Zimbabwe provided a written high-level political commitment to address the identified deficiencies and developed an action plan with the FATF for this purpose. The Commission welcomes these commitments and calls on these jurisdictions to complete the implementation of the action plan expeditiously and within the proposed timeframes. The implementation of the action plans will be closely monitored by the FATF. In order to take into account the level of commitment that has been demonstrated in the context of the FATF, these high-risk third countries are listed in the table in point I of the Annex to the Delegated Regulation (“High-risk third countries which have provided a written high-level political commitment to address the identified deficiencies and have developed an action plan with FATF”).

According to article 18a of Directive (EU) 2015/849, obliged entities in all Member States will be bound to apply enhanced customer due diligence measures with respect to business relationships or transactions involving countries included in Delegated Regulation (EU) 2016/1675.

Continue reading the article here:

https://lawprofessors.typepad.com/intfinlaw/2020/05/eu-blacklisted-countries-for-money-laundering-concerns.html

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