Delegated Regulation (EU) 2016/1675, established in 2016, serves to identify high risk-third countries posing substantial threats to the EU financial system due to deficiencies in Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) controls. The recent amendment, adopted on 10 June 2025, aligned the list of high-risk jurisdictions with the recommendations of the Financial Action Task Force (FATF).

Notably, even jurisdictions which are not publicly identified to be subject to increased monitoring and actions, may still present a risk for the EU financial system. Recognising this gap, the European Commission intends to take specific actions to protect the integrity of the EU financial system and assess whether such countries fall under the category of high-risk third countries.

The newly inserted Article 1a of the new Delegated Regulation adopting those measures requires the European Commission to complete a comprehensive review of such jurisdictions by 31 December 2025. Specifically, it targets countries outside the FATF's increased monitoring or call-to-action lists whose suspended membership indicates heightened systemic risks.

The findings of this review could lead to further amendments to the Annex of Delegated Regulation (EU) 2016/1675, thereby refining the EU’s approach to identifying and mitigating financial vulnerabilities associated with these jurisdictions.

Before these new measures come into effect, they will undergo scrutiny by both the European Parliament and the Council of the European Union. If no objections are raised, the Delegated Regulation adopting those measures will be published in the Official Journal of the European Union and will take effect 20 days thereafter.

The adopted Delegated Regulation can be found here