The EU adds Saudi Arabia to the blacklist of "dirty money" in the suppression of the financing of terrorism

The European Commission has added Saudi Arabia and a number of other countries to its black list of states enforcing lax controls on terrorist financing and money laundering.

The EU executive had been pressured by some Member States not to include the oil-rich autocracy on the list, with Member States worried about the negative consequences for trade.

Saudi Arabia is widely accused of doing nothing to prevent large sums of money that go to terrorists and Islamic extremists.

Panama, Nigeria and a number of US territories are among the other countries to be added to the list of the last review.

The listing means that EU banks must carry out very strict checks on payments involving entities from listed jurisdictions, in addition to damage to the reputation of the countries of which it is composed.

Věra Jourová, Commissioner for Justice, Consumers and Gender Equality, said: "We have put in place the highest standards in the world for combating money laundering, but we must ensure that dirty money from other countries does not reach our financial system.

"Dirty money is the cornerstone of organized crime and terrorism. I invite the countries listed to quickly remedy their deficiencies. The Commission is ready to work closely with them to solve these problems for our mutual benefit. "

Money laundering scandals have hit several EU banks in recent months, episodes that would have sparked the latest wave of repression. More recently, Danske Bank A / S has been involved in a dirty money scandal involving suspected funds from Russia.

The list now includes 23 financial jurisdictions, up from 16 previously. Brussels added Saudi Arabia, Libya, Botswana, Ghana, Samoa, the Bahamas and the four American territories of American Samoa, the US Virgin Islands, Puerto Rico and Guam.

The States already mentioned are Afghanistan, North Korea, Ethiopia, Iran, Iraq, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and Yemen.

Some states were removed from the blacklist after the EU judged them improved: Bosnia and Herzegovina, Guyana, Laos, Uganda and Vanuatu.

Countries may be on the list if they do not cooperate sufficiently with the EU, lack transparency or apply weak sanctions against money laundering or terrorist financing.

The list must be approved by the European Council, composed of the Member States. Countries will vote on the desirability of approving it by qualified majority. Ms. Jourova told reporters that she was confident that the list would pbad.

The list is distinct from a blacklist of tax havens different and equally controversial from the EU, which angered the jurisdictions that were listed there last year. Samoa, Trinidad and Tobago and the three American territories of American Samoa, Guam and the US Virgin Islands are on both lists.

Some critics, however, said the list was too flexible. Sven Giegold, a Green MEP who fights for financial problems, said: "Some of the biggest dirty money washing machines are still missing. These include Russia, the City of London and its offshore territories, as well as Azerbaijan. "

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