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The EU List of High-Risk Third Countries was updated in June 2025 by the European Commission to identify jurisdictions significant deficiencies in anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks.
The updated list of high-risk third countries aims to protect the EU's financial system from illicit activities. This list includes Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela. Jurisdictions such as Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates have been removed from the list, reflecting improvements in their compliance frameworks.
When a country is included on the EU list, obligated entities (such as banks, financial institutions, auditors, and law firms) are required to implement enhanced customer due diligence measures in accordance with Article 18a of Directive (EU) 2015/849. They must closely monitor transactions, thoroughly assess the source of funds and beneficial ownership, and consider imposing risk-based restrictions or terminating high-risk business relationships. Furthermore, institutions operating in or engaging with these countries need to update their risk assessments, compliance procedures, and internal controls accordingly.
The updated list underscores the EU's commitment to strengthening its financial system's integrity and security by addressing vulnerabilities related to money laundering and terrorist financing.
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