quora
webinr-icon

“A Fintech’s Path to Rapid Growth with 100% KYC/KYB Compliance” - 7th November

Register Here

US Treasury opposes European Commission AML Country List

european commission AML countries announcement 2019

The European Commission has adopted a new list of 23 countries which lack appropriate framework for anti-money laundering and counter terrorist financing.

On February 13th, the EC published its report on the state of AML; threats and possibilities. Iran, Iraq, Saudi Arabia, Puerto Rico, Pakistan, Sri Lanka, and North Korea are among the exhaustive list. According to EC, these territories “pose significant threat” to the financial and trade ecosystem due to key strategic flaws. The U.S. Department of the Treasury has highly criticised EC’s inclusion of four American territories; Puerto Rico, Guam, American Samoa and the US Virgin Islands under the high risk category.

In a continuity of political backlash, Panama has termed its inclusion to the list as “unfair punishment”.

The U.S. Treasury Department published a press release on the same day stating the evaluation process and methodology adopted by EC to be questionable. The process of developing the list lacks an in-depth review to perform assessment.  The countries added to the list were informed only a few days before publication of the report. The official commentary does not include a substantial guide to improve measures or appeal for exclusion from this list. Even the assessment seems to be perfunctory.

The Department quotes FATF; globally recognised standards body for AML/CFT as a benchmark for assessment procedures. Compared to FATF’s legally and research intensive methodology as well as dialogue formulation with territories, EC’s report appears deficient in terms of data, information, and method. The body goes on to reject the report. It announced that U.S. is committed to the AML/CFT standards as set forth by the FATF and will go on to ensure strict compliance with them. The Department has further intimated that U.S. financial institutions are under no legal restrictions to entertain or acknowledge EC’s findings.

 

The EC member states United Kingdom and France have already expressed their strong concerns over the publication of list by EC. The countries have strong trade and economic ties with list additions such as Saudi Arabia. The Saudi representatives regrets country’s inclusion to the list. Media, however, is discussing possible outcomes that could threaten the Vision 2030 investment.

As of now the EC has not made any further comments in this regard. The list compiled by EC is submitted for final approval by European Parliament and Council. After which it will officially come into force.

Studies show that USD 2 Trillion is laundered through AML software for banking systems. As compliances are growing stricter the need to improve AML/CFT measures by organisations is stronger than ever.

Related Posts

Anti Money Laundering, Blog, Business Technology, Identity & KYC

Customer Due Diligence: From KYC to KYB

The purpose of this law was to counter money laundering activities emerging from illicit drug tra...

Customer Due Diligence: From KYC to KYB Read More

Anti Money Laundering, Blog, Identity & KYC, Reg Tech

RegTech – FATF Guidance for Digital Identity Verification

The following are the key features of FATF guidance on digital ID systems. It is expected that th...

RegTech – FATF Guidance for Digital Identity Verification Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Identity & KYC

AML Compliance in EU Member States and Risks of Businesses

Major Concerns of ESAs The ESAs expressed some major concerns regarding the risks lurking in the ...

AML Compliance in EU Member States and Risks of Businesses Read More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Know Your Business-Pillar of Strength To AML Regulations

Back in 1970, when the Vietnam war was on the full swing, a deadly confrontation erupted regardin...

Know Your Business-Pillar of Strength  To  AML Regulations Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Fraud Prevention, Identity & KYC

Initial CCPA Compliance Costs Could Hit $55 Billion: Report

CCPA will affect three types of businesses based in California: Companies that have gross revenu...

Initial CCPA Compliance Costs Could Hit $55 Billion: Report Read More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Winter is Coming: With a Storm of KYC and AML Regulations

Changing Regulations with the Changing World   In the aftermath of the 2008 financial crisis...

Winter is Coming: With a Storm of KYC and AML Regulations Read More

Anti Money Laundering, Blog, Financial Crime / AML, Reg Tech

EU’s Sixth Anti-Money Laundering Directive (AMLD6)

AMLD6 – New Measures and Amendments   EU Commission proposed new measures to fight aga...

EU’s Sixth Anti-Money Laundering Directive (AMLD6) Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Identity & KYC

Global Economies are joining forces with FATF against money laundering

In 2019 as well, FATF took some vital steps to expanded the scope of its regulations to a global ...

Global Economies are joining forces with FATF against money laundering Read More

Anti Money Laundering, Blog, Business Technology, Identity & KYC

Customer Due Diligence: From KYC to KYB

The purpose of this law was to counter money laundering activities emerging from illicit drug tra...

Customer Due Diligence: From KYC to KYB Read More

Anti Money Laundering, Blog, Identity & KYC, Reg Tech

RegTech – FATF Guidance for Digital Identity Verification

The following are the key features of FATF guidance on digital ID systems. It is expected that th...

RegTech – FATF Guidance for Digital Identity Verification Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Identity & KYC

AML Compliance in EU Member States and Risks of Businesses

Major Concerns of ESAs The ESAs expressed some major concerns regarding the risks lurking in the ...

AML Compliance in EU Member States and Risks of Businesses Read More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Know Your Business-Pillar of Strength To AML Regulations

Back in 1970, when the Vietnam war was on the full swing, a deadly confrontation erupted regardin...

Know Your Business-Pillar of Strength  To  AML Regulations Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Fraud Prevention, Identity & KYC

Initial CCPA Compliance Costs Could Hit $55 Billion: Report

CCPA will affect three types of businesses based in California: Companies that have gross revenu...

Initial CCPA Compliance Costs Could Hit $55 Billion: Report Read More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Winter is Coming: With a Storm of KYC and AML Regulations

Changing Regulations with the Changing World   In the aftermath of the 2008 financial crisis...

Winter is Coming: With a Storm of KYC and AML Regulations Read More

Anti Money Laundering, Blog, Financial Crime / AML, Reg Tech

EU’s Sixth Anti-Money Laundering Directive (AMLD6)

AMLD6 – New Measures and Amendments   EU Commission proposed new measures to fight aga...

EU’s Sixth Anti-Money Laundering Directive (AMLD6) Read More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Identity & KYC

Global Economies are joining forces with FATF against money laundering

In 2019 as well, FATF took some vital steps to expanded the scope of its regulations to a global ...

Global Economies are joining forces with FATF against money laundering Read More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started