On May 17th, 2023, the European Commission made important updates to the list of high-risk third-country jurisdictions with strategic deficiencies in their anti-money laundering/countering the financing of terrorism (AML/CFT) regimes.
The updated list from the European Commission takes into consideration the latest Financial Action Task Force (FATF) list. The list now includes Nigeria and South Africa, while Cambodia and Morocco have been removed.
Lastly, to ensure compliance, European financial institutions must exercise enhanced vigilance when dealing with transactions involving high-risk third-country jurisdictions. These transactions require the application of ‘enhanced customer due diligence requirements’.