On 22nd August, the European Commission (EC) published a delegated regulation it adopted in July, which amended the list of high-risk third countries set out in Delegated Regulation 2016/1675, which supplements the Fourth Money Laundering Directive (AMLD4).
Article 9(2) of AMLD4 gives the EC power to adopt delegated acts identifying high-risk third countries. These are countries identified as presenting strategic deficiencies in their anti-money laundering and counter-terrorist financing regime that pose significant threats to the EU financial system. The amending Delegated Regulation adds Pakistan to the list of high-risk third countries set out in the Annex to Delegated Regulation (EU) 2016/1675.
Article 18a of AMLD4 requires entities covered by MLD4 to apply enhanced customer due diligence measures when dealing with natural persons or legal entities established in high-risk third countries.
