Debate: Objection pursuant to Rule  Deleting Gibraltar from the table in Point I of the Annex to Delegated Regulation  /
Date: TUESDAY, 23 APRIL 2024
Speaker: Helena Dalli
Language: EN

Following the latest developments from the Financial Action Task Force, the Commission updated its list on 14 March 2024, proposing to add Kenya and Namibia, and to remove Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates. In line with EU legislation, the Commission is committed to updating its list as soon as possible after the FATF plenary. Today, I am here to address Parliament’s concerns regarding the delisting of Gibraltar, Panama and United Arab Emirates. But let me also underline the importance of this vote in recognising the investment and positive progress made by the other jurisdictions proposed for delisting in this delegated act. The Commission, as a founding member of the FATF, has been closely involved in the delisting process of the UAE and Gibraltar within the FATF. Following on-site visits, the FATF concluded that all the shortcomings identified in the anti-money laundering / counter-terrorism financing regimes of these jurisdictions have been addressed through the implementation of their action plans.  No additional EU benchmarks were required for these jurisdictions since the Commission has assessed that the FATF action plans were sufficiently comprehensive in view of the EU delisting criteria. Therefore, in line with EU legislation, the Commission proposed to delist Gibraltar and the UAE swiftly after their delisting by FATF. During the FATF plenary in February 2024, the Commission called on the UAE to continue improving its AML/CFT regime and to further collaborate in the field of international cooperation. The Commission is committed to closely follow developments on strengthening international cooperation in the existing structural dialogue with the UAE, in close cooperation with the European External Action Service. Panama was already delisted by the FATF in October 2023. It was not immediately delisted because the Commission decided to impose additional requirements to those in the FATF action plan. Panama has provided evidence to the Commission on the fulfilment of the EU additional benchmarks. The Commission services have evaluated this information and shared its assessment with the European Parliament, Member States and the Council. Therefore, the Commission is proposing to delist Panama following improvements in the transparency of beneficial ownership information. Panama has notably demonstrated that its competent authorities are effectively responding to foreign requests for cooperation in identifying and exchanging basic and beneficial ownership information of legal persons and legal arrangements. On the specific situation of the UAE, I hear your concerns. Since Russia’s full-scale invasion of Ukraine in February 2022, the EU has imposed strong sanctions to curb Russia’s war capabilities. These sanctions are applicable within the EU and to EU operators.  Russia is, as we know, actively seeking ways to circumvent our sanctions by, among others, relying on imports from third countries. EU sanctions do not apply extraterritorially. They only apply to third country operators if there is an involvement of an EU operator. Fighting sanctions circumvention is one of our key priorities. Let me note that there is no legal basis in the EU AML/CFT framework to counter sanctions circumvention. We are addressing sanctions circumvention via other instruments. The Commission monitors trade to prevent the flow of restricted goods into Russia, and is able to identify suspicious trade routes and entities engaged in this trade. The UAE is among the third countries for which a careful monitoring of trade is being undertaken. The Commission is in close contact with the UAE on potential sanctions evasion through its territory. EU Special Envoy for Sanctions, David O’Sullivan, has visited the country twice, in February and September 2023. Subsequently, the UAE authorities prohibited the re-export of sensitive battlefield items to Russia. This was an important step. Additionally, two UAE-based entities have been listed in the latest EU sanctions package imposing export restrictions from the EU to these companies. It is true that signs are not encouraging and there is a lack of transparency on data from the UAE side.  Therefore, the Commission will continue to conduct political outreach and seeks to organise bilateral technical meetings between administrations to foster cooperation on suspicious trade patterns. In fact, the Special Envoy is on a visit to the UAE this week in order to further his discussions with authorities. Finally, let me assure you that we remain proactive and vigilant. We will continue assessing the situation, and we are ready to address any risks for the efficiency of our sanctions policy and for the protection of the EU’s financial system.