The European Commission has added Nigeria, Saudi Arabia, Panama and
other jurisdictions to a blacklist of nations that pose a threat because
of lax controls on terrorism financing and money laundering, the EU
executive said on Wednesday.
other jurisdictions to a blacklist of nations that pose a threat because
of lax controls on terrorism financing and money laundering, the EU
executive said on Wednesday.
The move is part of a crackdown against money laundering after
several scandals hit EU banks in recent months. But it has triggered
criticism from several EU states worried about their economic relations
with the listed states, notably Saudi Arabia.
several scandals hit EU banks in recent months. But it has triggered
criticism from several EU states worried about their economic relations
with the listed states, notably Saudi Arabia.
Criteria used to blacklist countries include low sanctions against
money laundering and terrorism financing, insufficient cooperation with
the EU on the matter and lack of transparency over the beneficial owners
of companies and trusts.
money laundering and terrorism financing, insufficient cooperation with
the EU on the matter and lack of transparency over the beneficial owners
of companies and trusts.
Five of the listed countries are already included on a separate EU
blacklist of tax havens. They are Samoa, Trinidad and Tobago and the
three US territories of American Samoa, Guam and US Virgin Islands.
blacklist of tax havens. They are Samoa, Trinidad and Tobago and the
three US territories of American Samoa, Guam and US Virgin Islands.
The Saudi government media office did not immediately respond to a
request for comment. Panama said it should be removed from the list
because it recently adopted stronger rules against money laundering.
request for comment. Panama said it should be removed from the list
because it recently adopted stronger rules against money laundering.
Despite pressure to exclude Riyadh from the list, the commission
decided to list the kingdom, confirming a Reuters report in January..
decided to list the kingdom, confirming a Reuters report in January..
Apart from reputational damage, inclusion on the list complicates
financial relations with the EU. The bloc’s banks will have to carry out
additional checks on payments involving entities from listed
jurisdictions.
financial relations with the EU. The bloc’s banks will have to carry out
additional checks on payments involving entities from listed
jurisdictions.
The list now includes 23 jurisdictions, up from 16. The commission
said it added jurisdictions with “strategic deficiencies in their
anti-money laundering and countering terrorist financing regimes”.
said it added jurisdictions with “strategic deficiencies in their
anti-money laundering and countering terrorist financing regimes”.
Brussels also added to its list Libya, Botswana, Ghana, Samoa, the
Bahamas and the four United States territories of American Samoa, U.S.
Virgin Islands, Puerto Rico and Guam.
Bahamas and the four United States territories of American Samoa, U.S.
Virgin Islands, Puerto Rico and Guam.
The other listed states are Afghanistan, North Korea, Ethiopia, Iran,
Iraq, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and
Yemen.
Iraq, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and
Yemen.
Bosnia Herzegovina, Guyana, Laos, Uganda and Vanuatu were removed.
The 28 EU states now have one month, which can be extended to two, to
endorse the list. They could reject it by qualified majority. EU
justice commissioner Vera Jourova, who proposed the list, told a news
conference she was confident states would not block it.
endorse the list. They could reject it by qualified majority. EU
justice commissioner Vera Jourova, who proposed the list, told a news
conference she was confident states would not block it.
She said it was urgent to act because “risks spread like wildfire in the banking sector.”
Reuters
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