On 24 March 2021, HM Treasury published an updated advisory notice concerning money laundering and terrorist financing controls in higher risk jurisdictions.
The advisory notice notes that Regulation 33(3) of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 provides that a high-risk third country means a country which has been identified by the European Commission in delegated acts adopted under Article 9(2) of the Fourth Money Laundering Directive. Under the provisions of the EU (Withdrawal) Act 2018, as amended, at the end of the transition period any amendments made by the EU to their list of high-risk third countries do not have effect in the UK. The list of high-risk third countries as of 31 December 2020 is at Annex C of the advisory notice.
The advisory notice explains that the UK will shortly be introducing legislation which will define high risk third countries with a specific list of countries that replicates the Financial Action Task Force’s list of jurisdictions under increased monitoring and the list of high-risk jurisdictions subject to a call for action. Once this legislation takes effect HM Treasury will issue a further advisory notice.
On the same date there was published on legislation.gov.uk, The Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021. These Regulations come into force on 26 March 2021.