On 13 February 2019, the European Commission adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (MLD4) by identifying high-risk third countries with strategic deficiencies. The Delegated Regulation identifies 23 high-risk third countries with strategic deficiencies in their safeguarding against money laundering and terrorist financing. The countries are listed in an annex to the Delegated Regulation. A Q&As webpage on the list has also been published.
Under Article 18 of MLD4, firms are required to apply enhanced due diligence (EDD) measures when dealing with financial operations involving customers and financial institutions from the high-risk third countries identified by the Commission.
The Delegated Regulation will be submitted to the Council of the EU and the European Parliament to consider for approval within one month (with a possible one-month extension). If neither objects, it will be published in the Official Journal of the EU.