Amendment to Regulation (EU) 2016/1675
This resolution objects to a European Commission decision to remove the United Arab Emirates (UAE), Gibraltar, and Panama from a list of countries with weak anti-money laundering rules. The Parliament believes these countries still pose a risk to the EU's financial system. The decision affects financial institutions and businesses in the EU that deal with these countries. They are currently required to apply stricter checks on transactions involving entities from countries on the high-risk list. The Parliament argues that despite some improvements, the UAE, Gibraltar, and Panama may still facilitate sanctions evasion, particularly concerning Russia. It calls for a more thorough assessment of risks before these countries are removed from the list. The Commission is asked to submit a new delegated act that addresses these concerns. The current delegated regulation, which also proposed removing Barbados, Uganda, and Namibia, cannot enter into force due to this objection.
Analysis
The European Parliament objects to the Commission delegated regulation amending Delegated Regulation (EU) 2016/1675.
What changes
- Addition of Kenya and Namibia to the list of high-risk third countries in the Annex to Delegated Regulation (EU) 2016/1675.
- Deletion of Barbados, Gibraltar, Panama, Uganda, and the United Arab Emirates from the list of high-risk third countries in the Annex to Delegated Regulation (EU) 2016/1675.
- Call for the Commission to submit a new delegated act that takes into account Parliament's concerns.
Expected impact
- The objection to the delegated act means it cannot enter into force, requiring the Commission to submit a new act.
- Union obliged entities under Directive (EU) 2015/849 are required to apply enhanced customer due diligence measures to high-risk third countries identified in the Annex.
- The United Arab Emirates (UAE) is a major global financial and trading hub, an important economic partner for the Union, and serves as a regional trade and logistics hub for Union operators.
Limitations
- The specific content of the proposed new delegated act is not detailed in the provided text.
- The exact criteria and thresholds used by the FATF for identifying high-risk countries are not fully elaborated.
- The specific details of the ongoing agreement negotiations between the European Union and the United Kingdom regarding Gibraltar are not provided.
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