Brussels, 15/04/2020 (Agence Europe) – Procedure too long, no 'grey' list and lack of
transparency: MEPs from the Economic and Monetary Affairs (ECON) and Freedoms
The European Parliament's civil servants (LIBE) told the Commission at a virtual meeting on Wednesday 15
April, their concerns about the new methodology it should soon present for its 'black' list
of third countries with a high risk of money laundering. Commission hears in
effect maintain its step-by-step approach, which aims to first consult countries identified as '
on the basis of the preliminary results of its evaluation, and then develop "rb EU reference" that would be specific to each country and, finally, ask them to commit to
apply specific corrective measures, within 12 months, before listing them.
The methodology should satisfy all the European institutions this time and make it possible to avoid a
further rejection of the list by the Council of the EU as in 2019 (see EUROPE B12209A12) or by the Parliament
European parliament several times in 2016 and 2017 (see EUROPE B11790A5), Martin Merlin
of the Commission's Directorate-General for Financial Stability.
However, at the meeting, several MEPs, such as Sophie in't Veld (Renew Europe, Dutch) or
Paul Tang (S&D, Dutch), was disappointed with the Commission's approach and strongly
criticised the slowness of the procedure.
Several cases are foreseen, Merlin recalled, including the possibility of immediately registering a country
on the list, if there is a "higher threat level", if the third country is not cooperative and refuses to
make commitments, if it does not implement the corrective measures within the agreed deadline or
again through an emergency procedure.
"I understand that 12 months is perceived by some as too long, but for others, 12 months is
considered insufficient, especially for some representatives of the Member States," he said.
Another shortcoming of the methodology, according to MEPs: the absence of a 'grey' list of third countries potentially
high risk, but committed to meeting "EU benchmarks".
This means that no information will be public for 12 months, until the Commission has
finalized its assessment, even though a country has been identified as having deficiencies in
money laundering, worried MEP Sven Giegold (Greens/EFA, German).
In written replies to MEPs' comments (see EUROPE B12441A16), sent on the same day
and consulted by EUROPE, the Commission replies that such a list "could expose the Commission to
legal risks and jeopardizing an ongoing decision-making process." The Anti mentions that only one list and not two, explained Martin Merlin.
No new 'black' list before the end of the year
The European Commission intends to adopt its new methodology at the beginning of May - probably on 6 May, if
the special circumstances related to Covid-19 allow this - as well as a delegated act amending the list
current to align with the new Financial Action Task Force list (GAFI).

However, for a new list based on the new methodology, we will have to wait until the end
of the year, Merlin.
Asked about the Commission's ability to resist diplomatic pressure, he said it was
above all an extremely technical process.
Russia had been identified as a priority country in 2018, but, at the time, the news
available were insufficient, he explained, assuring that once the methodology was revised
adopted, the Commission will reassess the situation in Russia in the light of the latest information
available.
In response to Luis Garicano (Renew Europe, Spanish), who wanted to know if the UK would be subjected
In a scrupulous assessment, Merlin recalled that the country remains bound by EU law, including the
Anti-money laundering directive, during the transitional period. He added: "Once the transition period
Finished, we will, of course, pay close attention to the situation in the UK." (Marion
Fontana)