Financial institutions in EU member states will now have to commit to greater levels of scrutiny for transactions.
The European Commission confirmed it intends to name Saudi Arabia on its updated list of high-risk jurisdictions for money laundering and terrorist financing.
Other countries including Pakistan, Libya and Panama have also been added to the list, which the European Parliament is expected to ratify within one month.
Financial institutions in EU member states will now have to commit to greater levels of scrutiny for transactions involving high-risk countries, including faster access for law enforcement agencies undertaking counter-terrorism investigations.
After a string of high-profile scandals involving EU-affiliated financial institutions and international accounts, the EC is acting.
Sven Giegold MEP told Al Jazeera “it’s a sign of European self-confidence…the EU will insist on imposing its standards”.
Saudi impact
The effect on Riyadh is likely to be threefold. First is the threat to investment from EU-related financial institutions, who had been targeted by Crown Prince Mohammed bin Salman as part of his Vision 2030 reform package. Second is the public relations damage from alleged links between Saudi Arabia and alleged armed groups including Islamic States of Iraq and the Levant (ISIL, ISIS) and al-Qaeda. The EC is adamant that it has reason to believe Saudi Arabian individuals or financial institutions are at high risk of being used in money laundering or financing terrorism. These new measures bring the prospect of uncomfortable ties between Saudi Arabian entities and organisations accused of terrorism.
Thirdly, Saudi citizens around the world account for the second largest remittances market on Earth, valued at $37bn in 2017. Citizens using EU-regulated financial institutions can expect greater scrutiny of their accounts, with transfers potentially being delayed or disrupted. Source: aljazeera.com
Tuesday, April 21, 2026
