Risk countries and risk areas, EU and FATF blacklists

EU and FATF gray and black lists

List of non-cooperative countries and territories

High-risk countries and risk areas represent a significant challenge for the global financial sector. The European Union (EU) and the Financial Action Task Force (FATF) maintain special lists to identify countries with deficiencies in the fight against money laundering and terrorist financing. These lists - known as "gray" and "black" lists - are crucial for companies and individuals conducting international business. Particularly relevant here is the List of non-cooperative countries and territoriesthat those non-cooperative countries and territories that have not taken sufficient measures against financial crime. Companies need to pay particular attention to these non-cooperative countries and territories in order to minimize risks and meet compliance requirements.

What are these lists?

• Gray list: Includes countries that are considered willing to cooperate but still have significant shortcomings in their systems for combating Money laundering and terrorist financing. These countries usually work with the EU or FATF to address their vulnerabilities.
• Blacklist: Includes countries that are considered uncooperative and have significant strategic deficiencies in their systems to combat money laundering and terrorist financing. These countries show little to no progress in remedying these deficiencies and therefore pose a higher risk.

What is the FATF?

The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 to set standards to combat money laundering, terrorist financing and other related threats to the international financial system. The FATF monitors the progress of its member countries in implementing these standards and prepares reports and recommendations to improve global financial security.

Detailed information on non-cooperative countries and territories

EU gray list (as of June 2024):

• Armenia
• Belize
• British Virgin Islands
• Costa Rica
• Curacao
• Eswatini
• Malaysia
• Seychelles
• Turkey
• Vietnam

EU decision 2024 on countries on the blacklist

Bahamas, Belize, Seychelles and Turks and Caicos Islands removed from blacklist

On February 20, 2024 the EU has removed the Bahamas, Belize, the Seychelles and the Turks and Caicos Islands from its list of non-cooperative tax jurisdictions. These countries have significant progress in the implementation of international tax standards and thus EU requirements fulfilled. The decision underlines the importance of global cooperation and transparency in tax matters. At the same time, the EU remains vigilant and will continue to monitor compliance with the agreed standards in order to combat tax evasion and unfair tax practices.

Why this is important:

• Global signal: The decision sends a strong signal to other countries to reconsider their tax practices.
• Economic impact: The countries concerned now benefit from improved economic cooperation with the EU.
• Continuous monitoring: Despite the removal from the list, the EU remains vigilant and continues to demand transparency.

Conclusion: The removal of these countries from the EU list shows the progress of international tax cooperation, but remains part of the ongoing fight against tax avoidance and unfair tax practices.

EU blacklist (as of June 2024):

• American Samoa
• Anguilla
• Antigua and Barbuda
• Fiji
• Guam
• Palau
• Panama
• Russia
• Samoa
• Trinidad and Tobago
• U.S. Virgin Islands
• Vanuatu

FATF gray list (as of June 2024) Risk countries and risk areas:

• Bulgaria
• Burkina Faso
• Haiti
• Cameroon
• Kenya
• Congo
• Croatia
• Mali
• Monaco
• Mozambique
• Namibia
• Nigeria
• Philippines
• Senegal
• South Africa
• South Sudan
• Syria
• Tanzania
• Venezuela
• Vietnam
• Yemen

FATF blacklist (as of June 2024):

• Iran
• Myanmar
• North Korea

Dangers and recommendations

Dangers:

1. More difficult account openings and account closures: EU banks can close accounts of residents of these risk countries and territories or not open any new ones.
2. Payment delays and chargebacks: Transactions to or from these countries may take longer or be rejected.
3. Criminal investigations: Suspicion of money laundering can lead to investigations if money is transferred to or from these countries.
4. Restricted business relationships: Business relationships with companies or persons in these countries may be restricted.

What you should avoid:

• Direct transactions with these countries: Avoid direct money transfers to or from these countries to avoid possible complications.
• business relationships with persons or companies in these countries: Be careful when entering into business relationships with entities in these risk countries and risk areas.
• Use of banks in these countries: Do not use Banks domiciled in these countries for international transactions.

Conclusion

The lists of risk countries and risk areas are updated regularly and the countries mentioned may change as they make progress or regress in the fight against money laundering and terrorist financing. It is important to regularly review the current lists and keep abreast of the latest developments. Dealing with risk countries and risk areas requires increased attention and precautionary measures to minimize compliance risks and ensure secure international business relationships.

Sources:

• EU black and gray list
• FATF black and gray list