Kenya joins EU’s high-risk list over financial crime

Kenya has been added to the European Union’s list of high-risk countries with weak systems to stop money laundering and terrorism financing.

In a notice issued on June 10, the European Commission said the update is aimed at strengthening the EU’s fight against financial crime.

The listing means banks and financial institutions in the EU must now apply tighter checks on transactions involving Kenya and other affected countries.

“This is important to protect the EU financial system,” the Commission said.

The new countries added to the list are Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.

At the same time, eight others have been removed: Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.

The list is based on assessments that follow global standards set by the Financial Action Task Force (FATF), which monitors countries with gaps in their anti-money laundering laws.

The Commission said it looked closely at FATF’s list of jurisdictions under increased monitoring.

“As a founding member of FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions,” it said, adding that the countries are expected to follow action plans they agreed to with FATF.

The EU also said it carried out a detailed technical review before making the changes. This included data from FATF, direct talks with the countries involved, and on-site visits.

“The Commission carefully considered the concerns expressed regarding its previous proposal,” the statement said.

The updated list is part of the EU’s legal duty under Article 9 of the 4th Anti-Money Laundering Directive (4AMLD), which requires regular reviews of countries considered risky.

The new rules will take effect once the European Parliament and Council complete a review, which can last up to two months.