European Commission list of high risk third countries
Article 9.2 of the Fourth EU Money Laundering Directive allows the European Commission to identify 'high-risk third countries'.
These countries are identified as having strategic deficiencies in their national anti-money laundering and counter-financing of terrorism regimes that pose significant threats to the EU’s financial system.
You must apply enhanced due diligence (EDD) measures in any transaction or business relationship with a person established in a high-risk third country.
For more guidance on appropriate EDD measures, see our guide to customer due diligence and the Legal Sector Affinity Group’s Anti-money laundering guidance.
High-risk third countries
Sixteen countries have been identified as high-risk third countries. They are:
- Bosnia and Herzegovina
- Lao PDR
- Sri Lanka
- Trinidad and Tobago
- Iran - seeking technical assistance in the implementation of the FATF Action Plan
- Democratic People's Republic of Korea - has repeatedly failed to address deficiencies
View the European Commission’s original list of high-risk third countries (July 2016).
The list was later amended in three delegate regulations:
The EU’s 5th Money Laundering Directive has broadened the criteria for the European Commission in assessing high-risk third countries. So it’s likely that this list will be expanded in future.