The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations, SI 2023/1306, update the list of countries in relation to which extra anti-money laundering due diligence requirements apply. Bulgaria, Cameroon, Croatia, Nigeria, South Africa and Vietnam have been added to the list, while Albania, Cayman Islands, Jordan and Panama have been removed. The full list is set out in Schedule 3ZA to the principal Anti-Money Laundering Regulations (SI 2017/692).
Extra due diligence measures are required to be taken by regulated businesses in respect of any business relationships and any relevant transactions involving any of the countries on the high-risk list.
The list set out in the UK regulations mirrors those countries identified by the Financial Action Task Force (FATF) as having deficiencies in their anti-money laundering and counter-terrorist financing regulatory regimes. Typically, regulations are issued to update the UK list to ensure it reflects the latest version of the FATF list. New powers have recently been introduced in the Economic Crime and Corporate Transparency Act 2023 s 187 (which will apply from 15 January 2024, by virtue of SI 2023/1206) to allow UK regulations to refer directly to the FATF list, suggesting that the UK intends to remain in full alignment with international standards.
The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations, SI 2023/1306, update the list of countries in relation to which extra anti-money laundering due diligence requirements apply. Bulgaria, Cameroon, Croatia, Nigeria, South Africa and Vietnam have been added to the list, while Albania, Cayman Islands, Jordan and Panama have been removed. The full list is set out in Schedule 3ZA to the principal Anti-Money Laundering Regulations (SI 2017/692).
Extra due diligence measures are required to be taken by regulated businesses in respect of any business relationships and any relevant transactions involving any of the countries on the high-risk list.
The list set out in the UK regulations mirrors those countries identified by the Financial Action Task Force (FATF) as having deficiencies in their anti-money laundering and counter-terrorist financing regulatory regimes. Typically, regulations are issued to update the UK list to ensure it reflects the latest version of the FATF list. New powers have recently been introduced in the Economic Crime and Corporate Transparency Act 2023 s 187 (which will apply from 15 January 2024, by virtue of SI 2023/1206) to allow UK regulations to refer directly to the FATF list, suggesting that the UK intends to remain in full alignment with international standards.
