On August 22, the European Commission (EC) published a Delegated Regulation it adopted on July 27, amending the list of high-risk third countries set out in Delegated Regulation (EU) 2016/1675, which supplements the Fourth Money Laundering Directive (MLD4).

Article 9(2) of MLD4 gives the EC power to adopt delegated acts identifying high-risk third countries. These are countries identified as presenting strategic deficiencies in their anti-money laundering and counter-terrorist financing regime that pose significant threats to the EU financial system. The amending Delegated Regulation adds Pakistan to the list of high-risk third countries set out in the Annex to Delegated Regulation (EU) 2016/1675. Article 18a of MLD4 requires entities covered by MLD4 to apply enhanced customer due diligence measures when dealing with natural persons or legal entities established in high-risk third countries.

Previous coverage of MLD4 is available in the January 30, 2015  editions of the Corporate & Financial Weekly Digest.

The Delegated Regulation is available here.