5 African countries added to EU money laundering blacklist

Business Insider

2 days ago

Several African countries have recently been added to the European Union's money laundering blacklist as high-risk jurisdictions with inadequate anti-money laundering (AML) and countering the financing of terrorism (CFT) regimes.
The EU has updated its blacklist, adding five African countries: Algeria, Angola, Côte d'Ivoire, Kenya, and Namibia.
Several jurisdictions, including Uganda and Senegal, have been removed from the blacklist
This inclusion necessitates enhanced due diligence measures for EU financial institutions handling transactions with these nations.
The European Union has updated its financial blacklist, adding five African countries: Algeria, Angola, Côte d'Ivoire, Kenya, and Namibia to its list of nations with strategic deficiencies in anti-money laundering and counter-terrorism financing systems.
The EU list of high-risk jurisdictions now includes 27 jurisdictions.
This decision means these countries are now considered high risk jurisdictions, requiring EU financial institutions to apply enhanced due diligence measures when dealing with transactions involving them.
The move is part of the EU's broader efforts to protect its financial system from illicit flows and uphold international standards set by the Financial Action Task Force (FATF).
The EU money laundering blacklist
The European Union maintains a blacklist of countries with significant weaknesses in anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks.
Countries on this list face increased scrutiny from EU banks and financial institutions for transactions, aiming to shield the EU's financial system from illicit funds linked to corruption, terrorism, or organized crime.
According to the European Commission, its classifications align with the Financial Action Task Force (FATF) commitment to monitor and support jurisdictions in implementing AML/CFT action plans. The Commission regularly updates the high-risk list as per the EU's 4th Anti-Money Laundering Directive.
" The identifying and listing of high-risk jurisdictions remains a crucial tool to safeguard the integrity of the EU's financial system," said Commissioner Maria Luís Albuquerque.
The latest update will take effect within a month, subject to approval by the European Council and Parliament.
Senegal, Uganda exit EU blacklist
In its latest announcement, the European Union has removed several jurisdictions from its list of high-risk countries due to significant improvements in their anti-money laundering (AML) frameworks.
The jurisdictions de-listed include Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates (UAE).
Their removal from the blacklist reflects notable progress in strengthening regulatory and enforcement mechanisms to combat financial crime.
Although these jurisdictions have now been delisted, the blacklisting had already impacted investment flows and financial relations with the EU, putting pressure on governments to reform and comply with international financial standards.