EU list of high-risk third countries
On March 16th 2023, the European Union updated its regulation on the prevention of money laundering and terrorist financing (ML/TF) with new rules affecting businesses in the EU. Regulation (EU) 2016/1675 supplements Directive (EU) 2015/849 (AMLD4) by identifying high-risk third countries with strategic deficiencies. The regulation has been revised to address changing risks and emerging technologies.
These countries are deemed to have strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CTF) regimes. Banks and financial institutions known as obliged entities must apply enhanced due diligence measures when dealing with customers or transactions involving these countries. Our Regulatory Compliance team is ready to support businesses with the establishment of enhanced due diligence procedures or the upgrading of existing ones.
The updated list of high-risk third countries is as follows:
- Burkina Faso
- Cayman Islands
- Democratic Republic of the Congo
- South Sudan
- Trinidad and Tobago
- United Arab Emirates
The regulation also identifies two high-risk third countries with substantial strategic deficiencies in their AML/CFT regimes. The two countries are:
- Democratic People’s Republic of Korea (DPRK)
Obliged entities such as investment firms and crypto-asset service providers operating within the EU must consider this information and adjust their anti-money laundering risk scoring and customer due diligence measures accordingly. Failure to comply with the regulation may lead to administrative or criminal offences.
The SALVUS Funds Regulatory Compliance team is available to support businesses requiring assistance with establishing enhanced due diligence procedures or upgrading existing ones.
If your business requires support with anti-money laundering regulatory requirements, please contact the us at firstname.lastname@example.org.