Black Lists of the EU Saudi Arabia: what does it mean? | Jamal Khashoggi News

The European Commission has confirmed its intention to appoint Saudi Arabia on its updated list of high-risk jurisdictions for money laundering and terrorist financing.

Other countries, including Pakistan, Libya and Panama, have also been added to the list, which the European Parliament is expected to ratify within one month.

Financial institutions in EU Member States will now have to commit to step up control of transactions involving high-risk countries, including faster access to law enforcement agencies in charge of counter-terrorism investigations.

After a series of notorious scandals involving financial institutions and international accounts affiliated with the EU, the EC acts.

Sven Giegold, MEP, told Al Jazeera: "This is a sign of self-confidence for Europe … the EU will insist on imposing its standards".

Saudi impact

The effect on Riyadh will probably be triple. The first is the threat to the investments of EU-related financial institutions, which were targeted by Crown Prince Mohammed bin Salman as part of his Vision 2030 reform package.

Second, there is the damage to public relations by alleged links between Saudi Arabia and alleged armed groups, including the Islamic States of Iraq and the Levant (ISIL) and Al Qaeda. The EC insists that it has reason to believe that Saudi individuals or financial institutions are at high risk of being used to launder money or finance terrorism. These new measures open the prospect of uncomfortable links between Saudi entities and organizations accused of terrorism.

Third, Saudi citizens worldwide represent the second largest remittance market in the world, valued at $ 37 billion in 2017. Citizens who use EU-regulated financial institutions can expect more in-depth review of their accounts, as transfers may be delayed or disrupted.

Saudi-European relations

The listing of Saudi Arabia on the list of high-risk countries marks a clear change in its relations with the EU.

"Europe was just not serious regarding ML and TF, this is changing," Giegold said.

He said the decision to include Saudi Arabia is proof that the EU is moving from a politically dominated decision-making process to a fact-based process, albeit one that is "over-the-top". it is necessary to do more.

"It is disturbing that Dubai is not here," he said, adding that "31 other countries are still being evaluated: Dubai, Russia, Azerbaijan and Turkey. other".

Wednesday's announcement casts a new course and will further threaten the development of the crown prince's reform program.

Prince's vision

The Vision 2030 began in 2016 as a program to diversify the Saudi economy and encourage private investment. But foreign direct investment in the kingdom fell sharply in 2017 and investor confidence was further undermined by the badbadination of Saudi writer Jamal Khashoggi last fall. The prospect of dealing with a country on the EC list could become an additional deterrent for investors.

The EU has been shown to be more virulent than the United States or individual EU member states in its Riyadh criticism. The inclusion of Saudi Arabia on the list also reflects years of difficult questions asked by European voters about the challenges posed by the financing of international terrorism. Time after time, after the attacks in Europe, insufficient data sharing has hindered the work of the law enforcement agencies.

The EU has been shown to be more virulent than the United States or individual EU member states in its Riyadh criticism. The inclusion of Saudi Arabia reflects the EU's disgust at Saudi Arabia's involvement in the killing of Khashoggi, as well as years of difficult questions of European voters on the challenges posed by the financing of international terrorism. Time after time, after the attacks in Europe, insufficient data sharing has hindered the work of the law enforcement agencies.

The list was established with the help of a new evaluation model that the EC describes as "the most stringent standards in the fight against money laundering in the world".

"Europe can not be a laundrette for dirty money that supports crime and terrorism," Justice Commissioner Vera Jourova said Wednesday.

Officially, the Kingdom's financing efforts against money laundering and terrorism are coordinated by a committee made up of several government departments and agencies. The Saudi government does not publish the findings of its own risk badessments, as do many other countries.

Countries can also be removed from the list and Jourova addresses it indirectly to Wednesday's additions, saying "this is an invitation to remedy your weakness".

It remains to be seen whether Saudi Arabia will respond to the appeal even though Mr Giegold was optimistic about the need to move forward. "It does not make the relationship easy, but it's necessary."