The European Commission has updated its list of high-risk countries deemed to have strategic deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks—naming Kenya among the newly added jurisdictions.
In a press release issued on Tuesday, June 10, the Commission said EU-based financial institutions are now required to apply enhanced due diligence measures when dealing with transactions involving listed countries, including Kenya.
Other countries added to the high-risk list are Algeria, Angola, Côte d’Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela. At the same time, eight countries were removed from the list: Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.
The Commission stated that the update was informed by findings from the Financial Action Task Force (FATF), the global watchdog on money laundering and terror financing. Kenya is among several jurisdictions FATF currently classifies as being under “increased monitoring.”
“As a founding member of FATF, the Commission is closely involved in monitoring the progress of these listed jurisdictions,” the statement read in part.
The European Union said the decision followed a detailed technical assessment based on FATF engagements, bilateral dialogues, and on-site evaluations. According to the EU, aligning its list with FATF strengthens the bloc’s commitment to protecting its financial system and upholding global standards on financial crime prevention.
Under Article 9 of the 4th Anti-Money Laundering Directive (4AMLD), the EU Commission is mandated to routinely update its list of high-risk third countries. The update now takes the legal form of a delegated regulation that will come into effect after a one-month scrutiny period by the European Parliament and Council.
Entities within the EU’s financial system have now been directed to apply “enhanced vigilance” in transactions involving countries listed as high-risk. This includes additional checks, documentation, and monitoring of clients or institutions from Kenya and the other newly listed jurisdictions.
The move is expected to have significant implications for cross-border banking, remittances, and foreign investments involving Kenyan institutions, pending local efforts to address the identified deficiencies.
