EU Update on AML/CFT High-Risk Third Countries: Removal of Jordan and Cayman Islands

The European Commission via the issuance of the Commission Delegated Regulation 2024/163/EU has enacted important changes to the list of third-country jurisdictions with strategic deficiencies in their AML/CFT regimes. This update focuses on the removal of Jordan and the Cayman Islands from the high-risk category, reflecting their significant progress in strengthening AML/CFT frameworks.

Directive (EU) 2015/849 empowers the Commission to identify high-risk third countries, and Commission Delegated Regulation (EU) 2016/1675 initially identified such countries.

Recent information, including FATF statements and reports, triggered this review. The FATF’s removal of the Cayman Islands and Jordan from the ‘Jurisdictions under Increased Monitoring’ list in October 2023 prompted a comprehensive assessment by the Commission. Those countries are identified as high-risk third countries in Delegated Regulation (EU) 2016/1675 but were deleted from the FATF list of ‘Jurisdictions under Increased Monitoring’ in October 2023.

The Commission acknowledges the substantial strides made by the Cayman Islands and Jordan in addressing their strategic deficiencies. Both countries have not only strengthened their AML/CFT regimes but have also been relieved from the FATF’s monitoring process.

Considering the progress made, the Commission considered it fit to remove the Cayman Islands and Jordan from the high-risk category, amending Delegated Regulation (EU) 2016/1675 accordingly.

Full List of High-Risk Third Countries (as of 22/01/2024):