Art. 30 Identification of third countries with compliance weaknesses in their national AML/CFT regimes | Anti-money laundering regulation (AMLR) | AML

This article sits alongside Article 29 (which deals with high-risk third countries) but targets a distinct, lower-severity category: third countries with compliance weaknesses in their AML/CFT regimes, rather than significant strategic deficiencies.

The Commission is empowered to identify these countries via delegated acts and, once identified, to specify which enhanced due diligence measures from Article 34(4) obliged entities must apply when dealing with natural or legal persons from those countries.

The Commission's baseline for its assessment is information from international organisations and standard setters that monitor jurisdictions of concern.

Delegated acts must be adopted within 20 calendar days of the criteria being met, and the Commission is required to review those acts on a regular basis.

Important points:

The Commission identifies third countries with AML/CFT compliance weaknesses and must adopt the corresponding delegated acts within 20 calendar days of confirming the relevant criteria are met.
Apply the specific enhanced due diligence measures identified in the delegated act to any business relationship or occasional transaction involving persons from a listed third country.
The Commission uses information from international organisations and standard setters monitoring at-risk jurisdictions as the baseline for its assessments.

1. Third countries with compliance weaknesses in their national AML/CFT regimes shall be identified by the Commission.
1. In order to identify the third countries referred to in paragraph 1, the Commission is empowered to adopt delegated acts in accordance with Article 85 to supplement this Regulation, where:
  1. compliance weaknesses in the legal and institutional AML/CFT framework of the third country have been identified;
  2. compliance weaknesses in the effectiveness of the third country’s AML/CFT system in addressing money laundering and terrorist financing risks or in its system to assess and mitigate risks of non-implementation or evasion of UN financial sanctions relating to proliferation financing have been identified.
2. Those delegated acts shall be adopted within 20 calendar days of the Commission ascertaining that the criteria in point (a) or (b) of the first subparagraph are met.
1. The Commission, when drawing up the delegated acts referred to in paragraph 2 shall take into account, as a baseline for its assessment, information on jurisdictions under increased monitoring by international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing, as well as relevant evaluations, assessments, reports or public statements drawn up by them.
1. The delegated act referred to in paragraph 2 shall identify the specific enhanced due diligence measures among those listed in Article 34(4), that obliged entities shall apply to mitigate risks related to business relationships or occasional transactions involving natural or legal persons from that third country.
1. The Commission shall review the delegated acts referred to in paragraph 2 on a regular basis to ensure that the specific enhanced due diligence measures identified pursuant to paragraph 4 take account of the changes in the AML/CFT framework of the third country and are proportionate and adequate to the risks.