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EU Commission Delegated Act on High Risk Third Countries

MEDIA ROOM

March 4, 2022

As stipulated in Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council (‘Directive (EU) 2015/849’), the European Commission is required to identify third countries which have strategic deficiencies in their AML/CFT mechanisms and which thus present significant threat to the EU’s financial system. This list, issued by the European Commission, is revised from time to time and available publicly by virtue of the delegated acts.

Under Maltese Law, specifically the Prevention of Money Laundering and Funding of Terrorism Regulations (S.L. 373.01), a high risk third country (or non-reputable jurisdiction) is defined as any jurisdiction having deficiencies in its natural anti-money laundering and counter funding of terrorism regime or having inappropriate and ineffective measures for the prevention of money laundering and the funding of terrorism, taking into account any accreditation, declaration, public statement or report issued by an international organisation which lays down internationally accepted standards for the prevention of money laundering and for combating the funding of terrorism identified by the European Commission in accordance with Article 9 of Directive (EU) 2015/849.

By virtue of the Commission Delegated Regulation (EU) 2022/229 of 7 January 2022, the latest Delegated Act of the European Union’s (EU) Commission on High Risk Third Countries was issued and published on the Official Journal of the European Union on the 21st February 2022. In this regard, Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, The Philippines, Senegal and South Sudan have been added to the table in point 1 of the Annex of this Delegated Act. Whereas, Bahamas, Botswana, Ghana, Iraq and the Mauritius have been omitted from the same. The said table outlines the 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).

About the Author

This article has been authored by Dr Francesca Anastasi, CSB Group Legal, Risk & Compliance Advisor. For further information or assistance she may be contacted at [email protected].