The European Commission has updated its list of high-risk third countries with strategic deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks, adding Algeria and nine others to the latest revision.
The newly listed jurisdictions are Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela. The inclusion of these countries means financial institutions and businesses operating within the European Union (EU) must apply enhanced due diligence measures when engaging in transactions involving these territories.
This measure is part of the EU’s broader strategy to strengthen the resilience of its financial system against illicit financial flows and terrorist financing.
The European Commission explained that the decision to update the list aligns with recent assessments by the Financial Action Task Force (FATF), the global standard-setter on AML/CFT. The listed countries have been identified as “Jurisdictions under Increased Monitoring” by FATF, which means they are actively working with the body to address identified deficiencies in their AML/CFT regimes.
In a parallel move, the Commission has removed eight jurisdictions from the list, citing progress in addressing earlier concerns. These are Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.
According to the Commission, the updated list was the result of detailed technical assessments that took into account FATF evaluations, country-specific data, and bilateral dialogues. On-site reviews and feedback from EU stakeholders were also factored into the final decision.
“The alignment with FATF’s monitoring list is essential to ensure a coordinated international approach and to uphold the integrity of the global financial system,” a Commission spokesperson noted.
The revision falls under the European Union’s Fourth Anti-Money Laundering Directive (4AMLD), specifically Article 9, which requires the EU to identify jurisdictions posing significant threats to the financial system due to systemic weaknesses in their AML/CFT regimes.
The updated list will be formalised through a delegated regulation, which is subject to a one-month scrutiny period by the European Parliament and the Council of the EU. This period may be extended by another month before the regulation becomes legally binding.
The Commission stressed that continued engagement with the affected countries will be a key priority, as the EU remains committed to supporting efforts toward improving AML/CFT standards worldwide.
