This archive report was first published on 12 May 2020.
On May 12, 2020, the European Commission announced plans to add several countries to its list of nations that pose financial risks to the bloc due to failings on money laundering and terrorism financing.
The list, which is set to expand from 16 to 22 countries, includes Panama, the Bahamas, and Mauritius, among others. The Commission's decision is based on a draft document that highlights the need for increased scrutiny of financial transactions involving these countries.
Under EU law, banks and other financial institutions are required to closely examine their clients who have dealings with these countries. Companies in listed states are also banned from receiving new EU funding.
The Commission's decision brings the current list in line with the Financial Action Task Force (FATF) list, which is the global standard-setter for efforts to curb money laundering. However, the EU list does not include Albania and Iceland, both of which are on the FATF list.
The listing of the US territories had drawn criticism from Washington, and the EU has taken a lenient approach due to the disruptions caused by the current coronavirus pandemic.
The EU listing left out Saudi Arabia, the current holder of the G20 presidency, after the kingdom was included in an EU draft list last year until that document was struck down by EU governments after pressure from the oil-rich kingdom.
