EU updates list of high-risk AML/CFT countries: new jurisdictions in 2026

The European Commission has updated its list of third countries considered high-risk jurisdictions for combating money laundering and terrorist financing (AML/CFT). The changes reflect the work of the FATF and are aimed at strengthening oversight of international financial flows.

The update has practical implications for European businesses: transactions with companies and clients from high-risk countries may require more thorough due diligence and additional documentation.

Why the EU is updating the list

The European approach is based on assessing how effectively a country detects and prevents financial crime. If a national AML/CFT system exhibits strategic deficiencies, the country may come under increased scrutiny from European regulators.

The FATF, an international organization that sets global standards for combating money laundering and terrorist financing, plays a key role in this process. The European Commission takes into account the FATF's work and its list of jurisdictions under enhanced supervision.

Regularly updating the European list allows it to take into account the progress of individual countries and changes in the assessment of their national control systems.

Which countries have been added and removed

As part of the latest update, the EU added Bolivia and the British Virgin Islands to the list of high-risk jurisdictions.

At the same time, Burkina Faso, Mali, Mozambique, Nigeria, South Africa, and Tanzania were removed from the list. Thus, the list reflects not only the emergence of new risks but also the progress of countries that have implemented the necessary measures to improve their AML/CFT mechanisms.

The changes are particularly important for international companies, banks, payment institutions, and other financial participants that regularly work with foreign counterparties.

What does inclusion on the list mean for businesses?

Addition of a jurisdiction to the European high-risk list does not automatically prohibit transactions. However, EU financial institutions must apply a heightened level of due diligence to relationships and transactions involving such countries.

In practice, this may mean more detailed verification of beneficiaries, the origin of funds, the nature of the company's activities, and the economic significance of the payment. In some cases, a bank or payment provider may request additional corporate documents and confirmation of the Source of Funds or Source of Wealth.

Therefore, when choosing a jurisdiction for international business, it is important to consider not only taxes and registration costs, but also the country's AML status.

The Role of the FATF and Further Monitoring

The European Commission is a member of the global FATF system and participates in monitoring countries' implementation of agreed action plans. This coordination helps the EU maintain a unified approach to international financial security standards.

The legal basis for the European list remains Article 9 of the Fourth EU Anti-Money Laundering Directive, which provides for regular updates to the list of high-risk third countries.

IT-OFFSHORE will help you choose the right jurisdiction

When registering an international company, it is important to assess in advance not only the tax burden but also AML risks, bankability, and the attitude of financial institutions toward the chosen country.

IT-OFFSHORE helps entrepreneurs select a jurisdiction that takes into account their business specifics, banking and payment system requirements, and current international regulations. The company's specialists assist with business registration and help prepare the structure for working with international partners.