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What has happened?

The UK Government has, in April 2021, added Pakistan to the list of 21 high-risk countries with unsatisfactory money laundering and terrorist financing controls. This list replicates the list of countries named by the Financial Action Task Force (the FATF) as being high-risk or under increased monitoring.

What do you need to do?

The full list of high-risk third countries under Schedule 3ZA includes Albania, Barbados, Botswana, Burkina Faso, Cambodia, Cayman Islands, Democratic People’s Republic of Korea, Ghana, Iran, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Senegal, Syria, Uganda, Yemen and Zimbabwe.

Until the end of the Brexit transition period, the list of high-risk countries was determined by the European Union under the 4th Anti-Money Laundering Directive. Now the UK has its own standalone list with Pakistan featuring in it.

The UK Government’s Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 came into force from March 26, 2021. This identifies a “high-risk third country” as a country which is specified in Schedule 3ZA” and “a country which has been identified by the European Commission as a high-risk third country in delegated acts adopted under Article 9.2 of the fourth money laundering directive” is substituted for “a high-risk third country”.

In December 2020, a British Government report revealed that laundered money continues to flow unhindered from Pakistan into the UK and vice versa. The report, put together by the Treasury and the Home Office, named Pakistan, China, Hong Kong, Russia and the United Arab Emirates as the countries from where the largest flows of money were taking place.

How can we help you?

If you’d like to know more about how we can help you with your financial crime prevention arrangements, or any other regulatory compliance issues, our expert team is here to help. Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.