The Financial Intelligence Analysis Unit (FIAU) would like to shed light on the latest Delegated Act released by the EU Commission concerning High Risk Third Countries.
According to Article 9(4) of Directive (EU) 2015/849, the European Commission is tasked with identifying third countries presenting strategic deficiencies in their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations, posing a threat to the EU’s financial system. This list, which is reviewed periodically, is made public through delegated acts. The recent revision to the list of countries in the Annex to Delegated Regulation (EU) 2016/1675 now includes Cameroon and Vietnam.
A “high-risk third country” aligns with the definition outlined in Regulation 2(1) of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) as a jurisdiction lacking a reputable financial standing. It is important for entities to ensure compliance with their obligations as stipulated in Regulation 11(10) and Regulation 11(11) of the PMLFTR, and, where applicable, Section 8.1.1 and Section 8.1.3 of the FIAU Implementing Procedures Part I. They should duly note the EU’s consolidated list of high-risk third countries.
While the list of high-risk third countries may exhibit similarities to the FATF’s own lists, it is crucial for entities to recognize that the two lists are not identical, and a country may appear on one list while being absent from the other.