The European Union has added Monaco to its list of countries it considers to pose a high risk of money laundering and terrorist financing, placing the Mediterranean prince state alongside countries such as Syria, Myanmar and Burkina Faso.

The European Commission also added Venezuela to the blacklist, while removing the United Arab Emirates and Gibraltar. Russia, once again, was not included in the new updated list.

The announcement was made nearly a week late, amid growing speculation about the Commission’s choices.

Topic with strong political charge

As Politico notes, last year, the European Parliament – which, like the Council, can object – rejected an initial attempt to remove SEEs from the list and resisted the same proposal pushed behind closed doors by Financial Services Commissioner Maria Louise Albuquerque.

MEPs also pressed the Commission to include Russia on the list, which was not done due to opposition from the BRICS, to which Russia belongs. Last week, Czech EPP MEP Luděk Niedermayer called on the Commission to “seriously consider” blacklisting Russia, according to documents cited by Politico.

The European Commission usually aligns itself with the decisions of the FATF Financial Action Task Force which was established in 1989 by the G7 group. It has done so now, placing Monaco on the list of countries with anti-money laundering deficiencies, even though they have pledged to address them.

At the time Monaco was added to the list, the UAE was removed. The EU is competing with the US for a trade agreement with the Emirates. Objections to their removal were partially allayed when the UAE sent written commitments to strengthen judicial cooperation with the EU and Europol, preceded by a mission of MEPs to the country.

Some MEPs, however, consider the UAE’s progress to be insufficient. German Green MEP Rasmus Andresen said that “the UAE has not made sufficient progress” and pointed out that a trade deal with the Emirates would allow “criminals to channel illegal funds back into our financial system.”

Meanwhile, Spain’s centre-right expressed dissatisfaction with the removal of Gibraltar from the list.

Country additions and removals from the list

The following countries have been added to the high-risk list: Algeria, Angola, Angola, Ivory Coast, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.

Removed are: Barbados, Gibraltar, Gibraltar, Jamaica, Panama, Panama, Philippines, Senegal, Uganda and United Arab Emirates.