MEP’s reject EU Commission blacklist of states at risk of money laundering and terrorist financing

Ministers of the European Parliament (MEPs) recently voted to return to the European Union (EU) Commission a blacklist of countries that were determined to be at risk of money laundering and terrorist financing, citing the list’s limited nature and a need to include territories that facilitate tax crimes.

“The strength of the vote reflects the strength of feeling in Parliament about the inadequacy of this current list,” said Netherlands MEP Judith Sargentini. “We now hope that the commission will be more ambitious in its revisions, so as to create a blacklist which is fit-for-purpose.”

The commission listed 11 countries for the blacklist, including Afghanistan, Iraq, Bosnia and Herzegovina, Guyana, Laos, Syria, Vanuatu, Uganda, and Yemen.

In their determination, the MEPs said the list was deficient in countering money laundering and terrorist financing, however, an existing inventory of countries that fell short in the area of anti-money laundering and terrorist financing will remain in force while the commission considers any revisions to the list.

“A country should be placed on the ‘blacklist’ only when there is clear evidence of a systematic threat of money laundering and terrorist financing,” said MEP Krišjānis Karins of Latvia. “The commission needs to have a straightforward and transparent algorithm that can withstand public scrutiny.”

The resolution condemning the list was passed by a vote of 393 – 67, with 210 abstentions.