On 22 August 2018, the European Commission published a Delegated Regulation which amends Delegated Regulation (EU) 2016/1675 supplementing the Fourth Anti-Money Laundering Directive (4MLD).

The Delegated Regulation adds Pakistan to the Annex of Delegated Regulation (EU) 2016/1675 which details third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing regimes.

According to Article 18a of the 4MLD, obliged entities in all Member States will be bound to apply enhanced customer due diligence measures when dealing with natural persons or legal entities established in high risk third countries as set out in Delegated Regulation (EU) 2016/1675.