The European Commission has added four African countries to the new list of countries that pose financial risks to the European Union due to money laundering and terrorist financing.

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The four countries are Botswana, Ghana, Mauritius and Zimbabwe. Uganda is already on the list, which now has a total of 22 countries. The EU said that all countries on the list except North Korea had promised to change their rules to overcome the problem.

The Commission says more needs to be done to prevent money laundering in these countries.

According to Reuters documents, countries on the list “pose a significant threat to the Union’s financial system”.

The European Commission said on Thursday that it was considering forming a new body to fight financial crime and tighten banking supervision.

Concept of money laundering – one hundred bills hanging on a cord, outdoors

“We must end the dirty money that has infiltrated our financial system. Today, we support our defence against money laundering and terrorist financing with a comprehensive action plan,” said Valdis Dombrovskis, Executive Vice President of the European Commission.

With additional countries, companies in each country are prohibited from receiving new funds from the European Union. The updated list is expected to take effect in October this year.

Banks and other financial and tax companies need to examine their customers who do business with countries registered under EU law.

Ethiopia and Tunisia have been removed from the list due to progress in the fight against money laundering and terrorist financing.

Transparency International has called for immediate action during the COVID-19 pandemic, which could lead to a significant increase in criminal activity with cross-border financial flows.

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