in

4 African Countries Added To EU Blacklist For Money Laundering

BRUSSELS, BELGIUM – MAY 7: EU Executive Vice President of the European Commission for An Economy that Works for People Valdis Dombrovskis is talking to media about the fight against money laundering and terrorist financing at the Berlaymont, the EU Commission headquarters on May 7, 2020 in Brussels, Belgium. (Photo by Thierry Monasse/Getty Images)

The European Commission added four African countries to a new list of countries that pose financial risks to the European Union due to anti-money laundering and terrorism financing shortfalls.

The four countries are Botswana, Ghana, Mauritius and Zimbabwe. Uganda was already on the list which now has a total of 22 countries. The EU said all countries on the list with the exception of North Korea pledged to change their rules in order to address the problem.

Loading...

The Commission says more needs to be done to contain the practice of money-laundering in those countries.

According to a document seen by Reuters, the countries on the list “pose significant threats to the financial system of the Union”.

The European Commission on Thursday said that it is looking into the possibility of creating a new authority to tackle financial crime and keep an eye on banks more strictly.

“We need to put an end to dirty money infiltrating our financial system. Today we are further bolstering our defences to fight money laundering and terrorist financing, with a comprehensive and far-reaching Action Plan,” EU Executive Vice President of the European Commission Valdis Dombrovskis said.

The addition of the countries means that companies in any of them are prohibited from receiving new funding from the European Union. The updated list is set to come into force in October this year.

Banks and other financial and tax firms are obligated to inspect more closely their clients who have any dealings with countries on the list, according to EU law.

Meanwhile, Ethiopia and Tunisia have been removed from the list owing to progress they have made in tackling money laundering and terrorism financing.

Transparency International has called for urgent action during the COVID-19 pandemic which could lead to a marked increase in criminal activity involving cross-border financial flows.

Loading...

Written by PH

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Egypt Reports 393 New COVID-19 Cases As Infections Near 8,000

Lesotho’s King Assents To Bill Limiting PM Thabane’s Powers