We categorise jurisdictions in accordance with the current level of risk posed by firms and other actors operating in these jurisdictions and the impact they may have on the FCA’s financial crime objectives. In particular, these objectives are linked to tackling money laundering, sanctions systems and controls, terrorist financing, and bribery and corruption. These responsibilities are an integral element of our statutory duties as a financial regulator. Our risk also considers the size of a country’s economy (GDP) and the financial markets within the jurisdictions concerned.
The list is one of a number of tools used by our Authorisations Division to help inform the effective assessment and processing of applications from firms seeking to conduct regulated financial service activities in the UK. As with the other tools used internally by our Authorisations Division, the list aims to ensure that appropriate consideration is given to all of the different facets of the applicant firm. It does not serve to exclude firms from operating from, or being active in, the jurisdictions featured on the list. Moreover, it does not impose any new requirements on firms as we expect firms to conduct their own thorough risk assessments and apply proportionate systems and controls.
Jurisdictions are assessed using a broad range of publicly available information and indices. These include: HM Treasury Sanctions publications, the Financial Action Taskforce high-risk and non-cooperative jurisdictions list in relation to anti-money laundering (AML) and the financing of terrorism, MoneyVal evaluations, Transparency International Corruption Perception Index, the Foreign & Commonwealth Office (FCO) Human Rights Report, the UK Government’s Overseas Business Risk webpages the US Department of State International Narcotics Control Strategy Report and other public information about financial crime issues affecting each jurisdiction.
During supervisory visits to assess firms’ AML controls, we tend to focus on business relationships which have higher risk factors. The factors we take into account include, but are not limited to: country risk, company structures, political connections, the customer’s or beneficial owner’s reputation, source of wealth, source of funds, expected account activity, sector risk, and involvement in public contracts.This is consistent with the guidance we have issued to firms on AML risk assessment in our document Financial Crime: A Guide for Firms.
Transparency is at the heart of the FCA’s approach to regulation and we are committed to disclosing information in a way that can be clearly understood by all market participants. The list will be reviewed on a quarterly basis to take account of legislative and regulatory developments within the jurisdictions concerned. The FCA will also continue, on an ongoing basis, to monitor and identify additional jurisdictions which should feature on the list.
The list is currently undergoing its quarterly review and an updated list will be published in due course.
High risk country list: previous edition
- Afghanistan
- Algeria
- Angola
- Argentina
- Azerbaijan
- Bahrain
- Bangladesh
- Belarus
- Benin
- Bolivia
- Bosnia and Herzegovina
- Brazil
- Bulgaria
- Burundi
- Cambodia
- Cayman Islands
- China
- Colombia
- Republic of the Congo
- Democratic Republic of Congo
- Cuba
- Djibouti
- Dominican Republic
- Ecuador
- Egypt
- Equatorial Guinea
- Eritrea
- Ethiopia
- Fiji
- Gabon
- Guatemala
- Guinea
- Guinea-Bissau
- Haiti
- Honduras
- India
- Indonesia
- Iran
- Iraq
- Israel
- Ivory Coast (Cote d'Ivoire)
- Jamaica
- Kazakhstan
- Kenya
- Korea (North)
- Kosovo
- Kuwait
- Kyrgyzstan
- Laos
- Latvia
- Lebanon
- Liberia
- Libya
- Malaysia
- Mali
- Mexico
- Montenegro
- Morocco
- Myanmar
- Nauru
- Nepal
- Nicaragua
- Niger
- Nigeria
- Pakistan
- Palestine
- Panama
- Romania
- Russia
- Saudi Arabia
- Serbia
- Seychelles
- Sierra Leone
- Somalia
- South Africa
- Sri Lanka
- Sudan (North)
- Sudan (South)
- Suriname
- Swaziland
- Syria
- Tajikistan
- Tanzania
- Thailand
- Tunisia
- Turkey
- Turkmenistan
- UAE
- Ukraine
- Uzbekistan
- Vatican City
- Venezuela
- Yemen
- Zambia
- Zimbabwe
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