Panama would be included in the European Commission sanctions list, for failures in anti-money laundering measures
The new draft of the EU list largely reflects a list compiled by the Financial Action Task Force (FATF), which is the creator of global standards for efforts to curb money laundering.
The European Commission would add Panama, the Bahamas and Mauritius to its list of countries that present financial risks due to failures in the fight against money laundering and terrorist financing, according to the draft of a document that the agency, according to Reuters.
The document, which would be formally released on Thursday, May 7, expands an existing sanctioning list, but does not include Saudi Arabia and the United States territories, which had been added to a previous list, before being filed after foreign pressure.
The countries on the list "pose significant threats to the financial system of the European Union," reads the draft document, which is still subject to change, Reuters reported.
In June 2019, Panama again entered the gray list of the Financial Action Group (FATF) due to the lack of effectiveness in the fight against money laundering.
Despite the progress made in recent years in strengthening the legislative framework on the prevention of money laundering, the lack of effectiveness in combating this crime led Panama to the FATF's sanctions list, which is now the reference to the European Commission to issue its next listing this week.
The Commission is also about to list Barbados, Botswana, Cambodia, Ghana, Jamaica, Mongolia, Myanmar, Nicaragua and Zimbabwe.
The draft decision brings the current list of 16 to 22 jurisdictions to be closely monitored, although the highest scrutiny will only apply from October, according to the document, a lenient approach the Commission said was due to disruptions caused by the current coronavirus pandemic.
The countries that were already on the list are Afghanistan, Iraq, Vanuatu, Pakistan, Syria, Yemen, Uganda, Trinidad and Tobago, Iran and North Korea.
Everyone except North Korea has vowed to change its rules to prosecute money laundering and terrorist financing.
The document, which would be formally released on Thursday, May 7, expands an existing sanctioning list, but does not include Saudi Arabia and the United States territories, which had been added to a previous list, before being filed after foreign pressure.
The countries on the list "pose significant threats to the financial system of the European Union," reads the draft document, which is still subject to change, Reuters reported.
In June 2019, Panama again entered the gray list of the Financial Action Group (FATF) due to the lack of effectiveness in the fight against money laundering.
Despite the progress made in recent years in strengthening the legislative framework on the prevention of money laundering, the lack of effectiveness in combating this crime led Panama to the FATF's sanctions list, which is now the reference to the European Commission to issue its next listing this week.
The Commission is also about to list Barbados, Botswana, Cambodia, Ghana, Jamaica, Mongolia, Myanmar, Nicaragua and Zimbabwe.
The draft decision brings the current list of 16 to 22 jurisdictions to be closely monitored, although the highest scrutiny will only apply from October, according to the document, a lenient approach the Commission said was due to disruptions caused by the current coronavirus pandemic.
The countries that were already on the list are Afghanistan, Iraq, Vanuatu, Pakistan, Syria, Yemen, Uganda, Trinidad and Tobago, Iran and North Korea.
Everyone except North Korea has vowed to change its rules to prosecute money laundering and terrorist financing.