Here’s a breakdown of Commission Delegated Regulation (EU) 2026\/46:<\/p>\n
**1. Essence:**<\/p>\n
This regulation amends Delegated Regulation (EU) 2016\/1675 to include Russia on the EU’s list of high-risk third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML\/CFT) regimes. This decision stems from the suspension of Russia’s membership in the Financial Action Task Force (FATF) due to its violation of FATF’s core principles and the identified weaknesses in Russia’s AML\/CFT framework. The inclusion of Russia on this list means that obliged entities within the EU (like banks) must apply enhanced due diligence measures when dealing with transactions involving Russia.<\/p>\n
**2. Structure and Main Provisions:**<\/p>\n
* **Recitals:** The regulation’s preamble (recitals) outlines the reasons for the amendment, referencing the need to protect the EU’s financial system, the integration of the international financial system, and the implications of Russia’s FATF suspension. It highlights specific strategic deficiencies in Russia’s AML\/CFT regime.
\n* **Article 1:** This is the core of the regulation. It states that the Annex to Delegated Regulation (EU) 2016\/1675 is amended as per the Annex to this new regulation.
\n* **Article 2:** Specifies the date of entry into force \u2013 the twentieth day following its publication in the Official Journal of the European Union.
\n* **Annex:** This adds a new category to the Annex of Delegated Regulation (EU) 2016\/1675: “High-risk third countries which are not identified as being subject to calls for action or increased monitoring by the FATF, but whose membership in that international standard-setter is suspended,” and lists the Russian Federation under this category.<\/p>\n
**Changes Compared to Previous Versions:**<\/p>\n
The key change is the addition of a new category to the list of high-risk third countries and the inclusion of Russia in that new category. This reflects a shift in the EU’s assessment of the risks posed by Russia’s AML\/CFT regime following its suspension from FATF.<\/p>\n
**3. Main Provisions Important for Use:**<\/p>\n
* **Inclusion of Russia as a High-Risk Third Country:** This is the most significant aspect. EU financial institutions and other obliged entities must now apply enhanced due diligence measures when dealing with individuals, entities, and transactions connected to Russia. This includes stricter scrutiny of transactions, enhanced monitoring, and potentially, the requirement to file suspicious transaction reports (STRs) more frequently.
\n* **New Category of High-Risk Countries:** The creation of a new category for countries suspended from FATF membership is also important. It signals that the EU is willing to independently assess AML\/CFT risks, even if a country isn’t explicitly blacklisted by FATF.
\n* **Obligations for EU entities:** The regulation directly impacts obliged entities under the EU’s AML\/CFT directive. They need to update their internal procedures and risk assessments to account for the increased risk associated with Russia.<\/p>\n
**:** This regulation has direct implications for Ukraine and Ukrainians. Due to the ongoing conflict and Russia’s actions, any financial flows involving Russia carry a heightened risk of being linked to activities that undermine Ukrainian sovereignty or facilitate sanctions evasion. Ukrainians and businesses operating in or with ties to Ukraine should be particularly aware of the enhanced scrutiny that will be applied to transactions involving Russia.<\/p>\n