EU labels Russia 'high-risk' over anti-money laundering gaps

The European Commission has added Russia to its list of “high-risk” countries, citing significant shortcomings in the nation’s anti-money laundering and counter-terrorist financing frameworks.

The move follows a technical assessment based on publicly available information, input from European Union member states, and reports from the European External Action Service. The commission said the evaluation confirmed Russia meets the criteria for designation as a high-risk third country.

EU Economy Commissioner Valdis Dombrovskis described the step as crucial for protecting the integrity of the EU financial system.

“This ensures EU financial and non-financial operators apply stricter checks when dealing with Russian entities,” he said in a post on X.

Under the new designation, EU institutions and companies subject to anti-money laundering rules must exercise enhanced vigilance in transactions involving Russia.

The delegated regulation will come into force following review by the European Parliament and European Council within one month, with a possible one-month extension.

Russia has not yet responded to the announcement.

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