European Union financial institutions continue to face enhanced due diligence obligations when dealing with jurisdictions identified by the European Commission as having strategic deficiencies in their anti money laundering and counter terrorist financing frameworks.

The EU’s current high risk third country list includes eight African jurisdictions: Algeria, Angola, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Kenya, Namibia and South Sudan.

Under the EU’s AML framework, banks and other regulated institutions are required to apply increased checks and control measures to business relationships and transactions involving high risk third countries. These measures are designed to mitigate risks to the EU financial system arising from weaknesses in a jurisdiction’s AML/CFT regime.

The regulatory position has changed significantly for several African countries. In January 2026, the European Commission removed Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania from the EU high risk list following changes to the bloc’s assessment of their AML/CFT status.

The EU’s approach broadly tracks assessments by the Financial Action Task Force, while allowing the European Commission to conduct its own assessment of countries and jurisdictions. Its methodology considers areas including customer due diligence, suspicious transaction reporting, beneficial ownership transparency, international cooperation and targeted financial sanctions.

For African businesses seeking access to European banking, investment or trade channels, high risk designation can translate into greater scrutiny of customers, counterparties, ownership structures and transaction flows. It can also result in requests for additional documentation and a longer compliance review process.

The development is particularly relevant for banks, fintechs, payment companies, correspondent banking relationships and multinational businesses operating across Africa and Europe. Compliance teams may need to apply enhanced customer due diligence, establish the source of funds and wealth, examine beneficial ownership and conduct closer monitoring of transactions involving listed jurisdictions.

The EU’s continuing updates also underline the importance of dynamic sanctions and AML screening. A jurisdiction’s status can change following FATF action plans, regulatory reforms and subsequent European Commission reviews.

Compliance impact: Businesses with African operations or European banking relationships should ensure their customer risk assessments and transaction monitoring frameworks reflect the EU’s latest high risk country list rather than relying on outdated country risk classifications.