ANSD : EU adds Saudi Arabia to terror financing list

WED 27 - 11 - 2024

Date: Jan 26, 2019
Source: The Daily Star

EU adds Saudi Arabia to terror financing list

_Reuters
BRUSSELS/RIYADH: The European Commission has added Saudi Arabia to an EU draft list of countries that pose a threat to the bloc because of lax controls against terrorism financing and money laundering, two sources told Reuters. The move comes amid heightened international pressure on Saudi Arabia after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate on Oct. 2.

The EU’s list currently consists of 16 countries, including Iran, Iraq, Syria, Afghanistan, Yemen and North Korea, and is mostly based on criteria used by the Financial Action Task Force, a global body composed by wealthy nations meant to combat money laundering and terrorism financing.

But the list has been updated this week, using new criteria developed by the EU Commission since 2017. Saudi Arabia is one of the countries added to the updated list that is still confidential, one EU source and one Saudi source told Reuters.

The move is a setback for Riyadh at a time when it is striving to bolster its international reputation in order to encourage foreign investors to participate in a huge transformation plan and improve financial ties for its banks.

Apart from reputational damages, the inclusion in the list complicates financial relations with the EU. The bloc’s banks will have to carry out additional checks on payments involving entities from the listed jurisdictions.

The provisional decision must be endorsed by the 28 EU states before being formally adopted next week.

Countries are blacklisted if they “have strategic deficiencies in their anti-money laundering and countering the financing of terrorism regimes that pose significant threats to the financial system of the Union,” the existing EU list declares.

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