Objection to a delegated act: Amending the table in Point I of the Annex to Delegated Regulation (EU) 2016/1675
TA-9-2024-0291 · P9_TA(2024)0291 · PE760.686
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Parliament objects to the Commission delegated regulation of 14 March 2024 that would add Kenya and Namibia to the EU list of high-risk third countries and remove Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates from it.¶¶¶ Parliament says the delegated regulation cannot enter into force and asks the Commission to submit a new delegated act that takes account of its concerns.¶¶ It argues the Commission should carry out its own assessment of high-risk third countries, not rely only on the Financial Action Task Force, and should take account of sanctions evasion as a predicate offence.¶¶¶ It points to evidence that the United Arab Emirates, Gibraltar and Panama facilitate or fail to address evasion of sanctions on Russia, and that entities based in the United Arab Emirates are involved in laundering proceeds from Sudan and in arms supplies in violation of an arms embargo.¶¶¶ It notes the United Arab Emirates is a major financial and trading hub and an important economic partner of the Union, and that civil society organisations have highlighted outstanding deficiencies in its anti-money laundering framework.¶¶¶ It says delisting the United Arab Emirates may not protect the integrity of the Union financial system and that a more thorough assessment is needed before delisting.¶
Key points
- Parliament objects to the Commission delegated regulation of 14 March 2024 amending Delegated Regulation (EU) 2016/1675.¶¶
- The delegated regulation would add Kenya and Namibia to the table in point I of the Annex and delete Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates from it.¶
- Parliament instructs its President to notify the Commission that the delegated regulation cannot enter into force.¶
- Parliament calls on the Commission to submit a new delegated act taking account of its concerns.¶
- Parliament expects the Commission to conduct its own assessment of third countries, attending to the specific vulnerabilities of the internal market, and not to rely solely on the Financial Action Task Force.¶¶
- Parliament says the list of criteria in Article 9(2) of Directive (EU) 2015/849 is non-exhaustive and that predicate offences such as sanctions evasion should be taken into account.¶
- Parliament cites evidence that the United Arab Emirates, Gibraltar and Panama lack efforts in addressing, or facilitate, evasion of sanctions imposed on Russia.¶
- Parliament cites United States sanctions on entities based in the United Arab Emirates over shipments to Russia and indications that the United Arab Emirates plays a role in cash-for-gold schemes providing Russia with banknotes.¶¶
- Parliament cites a warning that Panama is suspected of facilitating evasion of the G7 Russian oil cap.¶
- Parliament notes the agreement between the European Union and the United Kingdom on Gibraltar has not been concluded and no content has been disclosed.¶¶
- Parliament cites a United Nations report finding that entities based in the United Arab Emirates play a role in laundering proceeds from Sudan's gold mines and in supplying arms in violation of an arms embargo.¶¶
- Parliament notes civil society organisations have highlighted outstanding deficiencies in the United Arab Emirates' anti-money laundering framework and that delisting may not protect the integrity of the Union financial system.¶¶¶
Who is affected
- The Commission, which must be notified that the delegated regulation cannot enter into force and is asked to submit a new delegated act.¶¶
- Kenya and Namibia, which the delegated regulation would add to the EU list of high-risk third countries.¶¶
- Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates, which the delegated regulation would remove from the EU list.
- Obliged entities under Directive (EU) 2015/849, which apply enhanced customer due diligence measures for listed high-risk third countries.¶
Figures and deadlines
- EUR 49 billion: volume of bilateral trade between the Union and the United Arab Emirates in 2022.¶
- 27 %: annual increase in bilateral trade between the Union and the United Arab Emirates in 2022.
- EUR 277 billion: combined bilateral foreign direct investment between the Union and the United Arab Emirates in 2021.
- 32 000: population of Gibraltar, which ranks third worldwide in GDP per capita.¶
Legal basis: Article 290 of the Treaty on the Functioning of the European Union.¶