One of the pillars of the European Union's legislation to combat money laundering and countering the financing of terrorism is Directive (EU) 2015/849. According to this Directive, banks and other gatekeepers are required to apply enhanced vigilance in business relationships and transactions involving high-risk third countries.
The types of enhanced vigilance requirements are extra checks and control measures which are defined in article 18a of the Directive. On 7 January 2022, the European Commission adopted a new Delegated Regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes that pose significant threats to the financial system of the Union ('high-risk third countries').
Identification of such countries is a legal requirement stemming from Article 9 of Directive (EU) 2015/849 (4th anti-money laundering Directive) and aiming at protecting the Union financial system and the proper functioning of the internal market. The Delegated Regulation amends Delegated Regulation (EU) 2016/1675.