EU Commission Delegated Act on High Risk Third Countries

10 March 2023

The Financial Intelligence Analysis Unit (FIAU) would like to bring to your attention the latest Delegated Act of the European Union’s (EU) Commission on High Risk Third Countries, which was adopted by virtue of Delegated Regulation (EU) 2023/410 of 19 December 2022 and published in the EU’s Official Journal of 24 February 2023. A copy of this document has been uploaded on the FIAU’s website under ‘Country Statements’.

In terms of Article 9 of Directive (EU) 2015/849, the European Commission is to identify third countries which present strategic deficiencies in their AML/CFT regimes, and which pose a significant threat to the EU’s financial system (“high risk third countries”). The resulting list, which is reviewed and updated from time to time, is then made public through delegated acts.   The list of countries in Table I of the Annex to Delegated Regulation (EU) 2016/1675 has thus now been revised. The Democratic Republic of the Congo, Gibraltar, Mozambique, Tanzania, and the United Arab Emirates are now included, while Nicaragua, Pakistan, and Zimbabwe have been excluded from the updated list.

A high risk third country is considered as a non-reputable jurisdiction in line with the definition provided under Regulation 2(1) of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR). It is important that, in ensuring compliance with their obligations under Regulation 11(10) and Regulation 11(11) of the PMLFTR, as well as with Section 8.1.1 and Section 8.1.3 of the FIAU Implementing Procedures – Part I as they may be applicable, subject persons also take note of the EU’s consolidated list of high risk third countries.

While the resulting list of high risk third countries presents similarities with the FATF’s own lists, it is important that subject persons are aware that the two are not identical and a country may be present on one list but not on the other.

Any queries in relation to the above should be addressed on [email protected]