In general, high-risk jurisdictions refer to countries or regions identified as having significant deficiencies in their regulatory and legal frameworks for combating money laundering, terrorist financing, and other financial crimes. 

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These jurisdictions often lack stringent anti-money laundering (AML) and counter-terrorism financing (CTF) measures, making them susceptible to being used for illicit financial activities. 

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Financial institutions and businesses are required to exercise enhanced due diligence when dealing with clients or transactions involving high-risk jurisdictions. 

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This includes more rigorous verification processes, closer scrutiny of financial activities, and ongoing monitoring to detect and mitigate potential risks associated with these regions. 

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Specific to the EU Commission, they are empowered to identify high-risk third countries which have strategic deficiencies in their anti-money laundering and countering the financing of terrorism frameworks. This reduces the risks that could pose threats to the EU's financial system.

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The identification of high-risk counties is required in order to protect the EU financial system and the proper functioning of the internal market. 

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In line with the Directive (EU) 2018/843 (5th Anti-Money Laundering Directive), gatekeepers, such as banks, are obliged to carefully consider business relationships and transactions involving high-risk third countries through increased checks and control measures defined under Article 18a of the Directive.

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Latest version of the list of high-risk third countries

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On 12 December 2023, the European Commission adopted a new Delegated Regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes. The Delegated Regulation amends Delegated Regulation (EU) 2016/1675.

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The following jurisdictions are identified as having strategic deficiencies in their AML/CFT regimes. Note these are listed as Name of high-risk third country: date of entry into force

• Afghanistan: 23 September 2016
• Barbados: 1 October 2020
• Burkina Faso: 13 March 2022
• Cameroon: 18 October 2023
• Democratic Republic of the Congo: 16 March 2023
• Gibraltar: 16 March 2023
• Haiti: 13 March 2022
• Iran: 23 September 2016
• Jamaica: 1 October 2020
• Mali: 13 March 2022
• Mozambique: 16 March 2023
• Myanmar: 1 October 2020
• Nigeria: 16 July 2023
• North Korea: 23 September 2016
• Panama: 1 October 2020
• Philippines: 13 March 2022
• Senegal: 13 March 2022
• South Africa: 16 July 2023
• South Sudan: 13 March 2022
• Syria: 23 September 2016
• Tanzania: 16 March 2023
• Trinidad and Tobago: 6 March 2018
• Uganda: 23 September 2016
• United Arab Emirates: 16 March 2023
• Vanuatu: 23 September 2016
• Vietnam: 18 October 2023
• Yemen: 23 September 2016

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A consolidated version of the EU list is available (with only measures that have already entered into force).

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Reference: EU Anti-money laundering and countering the financing of terrorism at international level