STATEMENT - European Commission Publication of List of High Risk Jurisdictions with Strategic Anti-Money Laundering and Terrorist Financing (AML-CFT) Deficiencies

The Caribbean Community (CARICOM) deplores the
latest attack by the European Commission on the economic well-being of some of
our Member States who were named on 7th May 2020, in a list of third countries
with strategic Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT)
deficiencies, and which would therefore be subject to enhanced due diligence
measures by European Union (EU) States.

This list, which includes four (4) CARICOM Member
States was published despite the European Council, in objecting to a list
submitted for approval last year, concluding that the Commission’s submission
was “not established
in a transparent and resilient process that actively incentivises affected
countries to take decisive action while also respecting their right to be heard.” 

Impacted countries were neither informed nor
consulted prior to this month’s publication.

The Commission’s unilateral actions are therefore
contrary to the principles of transparency and consultation reflected in the
Council’s conclusion, as well as its own assertions about its Revised
Methodology which advocates prior engagement with third countries, as outlined
in its press release announcing the new list.

It should be noted that of the four CARICOM
States included in the Commission’s list, one has been delisted by the
Financial Action Task Force (FATF), the global AML/CFT standard-setting body,
since February 2020, and the other three Member States had already entered into
agreed Action Plans with the FATF/CFATF. 

Moreover, the Commission has published the
list of high risk jurisdictions, even as its Action Plan for a Comprehensive Union policy on Preventing Money Laundering and Terrorist Financing is still being
subject to stakeholder consultation that will conclude by July 2020.

CARICOM Member States continue to demonstrate
their commitment to strengthening
their AML/CFT frameworks and have actively participated in the CFATF’s mutual evaluation process.  The Caribbean Community maintains its call for a uniform, fair
and transparent assessment process that is based on an inclusive, multilateral
framework.

As a longstanding
partner of the Caribbean Community, the action of the European Commission is
not in keeping with the collaborative and supportive relationship between
CARICOM and European States. 

The Caribbean
Community therefore calls upon the European Union Member States to once again
reject the Commission’s proposals as callous and premature, at this moment in
time. 

19 May 2020