EU Publishes List of Countries with Deficiencies in Counter Terrorism Financing

Brussles, 10 Syawal 1437/15 July 2016 (MINA) – The European Commission formally adopted Thursday a list of 11 third countries having strategic deficiencies in their regimes on Anti-Money Laundering and Countering Terrorist Financing, KUNA reported.

Banks will have to carry out additional checks on financial flows from these 11 countries, sad the EU’s executive body in a statement.

High-risk third countries which have provided a written high-level political commitment to address the identified deficiencies and have developed an action plan with the Financial Action Task Force (FATF) are: Afghanistan, Bosnia and Herzegovina, Guyana, Iraq, Lao PDR, Syria, Uganda, Vanuatu and Yemen.

Iran is also included in the high-risk third countries but which have provided a high-level political commitment to address the identified deficiencies, and have decided to seek technical assistance in the implementation of the FATF Plan.

North Korea belongs to the high-risk third countries which present ongoing and substantial money laundering and terrorist financing risks, having repeatedly failed to address the identified deficiencies, noted the statement.

Vera Jourova, EU Commissioner for Justice, said “today’s list is part of our broader drive to tackle terrorism financing and money laundering. We need to cut off terrorists and other criminals from their resources. To put Europe at the forefront of the global fight against money laundering, we have proposed a common European set of stricter checks in relation to financial flows from these countries.”

She noted that the EU will continue to engage with the concerned countries, the ultimate goal being their compliance and removal from the list.

The list of the Commission will be reviewed at least three times a year, after each FATF meeting assessing the latest developments.

FATF is an inter-governmental body established in 1989 to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other threats to the integrity of the international financial system.

The FATF currently comprises 35 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe. Saudi Arabia has an observer status in it.

The FATF President is a senior official appointed by the FATF Plenary from among its members for a term of one year. The term of the President begins on 1 July and ends on 30 June of the following year. Juan Manuel Vega-Serrano from Spain assumed the position of President of FATF on 1 July 2016.

The FATF Secretariat is located at the OECD Headquarters in Paris. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)