EU Updates High-Risk AML List: What It Means for Retail Expansion Strategy (2025)

On June 10, 2025, the European Commission announced a revised list of high-risk countries for anti-money laundering and counter-terrorism financing (AML/CFT). The updated regulation reflects the EU’s continued alignment with the Financial Action Task Force (FATF) and reinforces the bloc’s commitment to protecting the integrity of its financial system.

Strategic Additions and Removals

Added to the EU High-Risk AML List
The following 10 countries were added due to ongoing strategic deficiencies in their AML/CFT frameworks:

• Algeria

• Angola

• Ivory Coast

• Kenya

• Laos

• Lebanon

• Monaco

• Namibia

• Nepal

• Venezuela

Removed from the List
In contrast, Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates (UAE) have been delisted, having demonstrated significant improvements in regulatory enforcement, beneficial ownership transparency, and international cooperation.

Why This Matters for Retail Market Entrants

For companies expanding internationally—especially into frontier and emerging markets—this update signals both risk and opportunity. Here’s how:

1. De-risked Financial Hubs

Jurisdictions like Panama, UAE, and the Philippines are key logistics and financial gateways for LATAM and APAC operations. Their removal from the list reduces regulatory burden and improves banking access—critical for cross-border payments, procurement, and supply chain financing.

2. Investor & Partner Confidence

Retailers relying on international financing, franchising, or joint ventures may now face fewer compliance constraints when dealing with delisted countries, making them more attractive for regional HQs or e-commerce fulfillment centers.

3. Heightened Scrutiny in Newly Added Markets

Countries like Kenya, Ivory Coast, and Angola are promising growth markets with rising middle classes. However, their new "high-risk" classification could slow down investment, increase onboarding times, and complicate banking relationships.

What Retailers and Market Entry Teams Should Do

• Update Risk Assessments: Align internal compliance frameworks with the new EU list—especially if your business handles payments, KYC/AML onboarding, or B2B partnerships in these regions.

• Monitor Regulatory Shifts: Countries on the EU list face tighter banking scrutiny, potential investor hesitancy, and reputational risks. Use this data to inform go/no-go market decisions.

• Leverage Delisted Jurisdictions: Consider shifting regional operations or financing hubs to newly delisted countries to optimize transaction speed, cost, and credibility.

Retail Access Insight

This update underscores a broader trend: retail expansion strategies must integrate geopolitical and regulatory intelligence, not just market potential.
Markets like Panama and the UAE have just become more attractive for regional operations. Meanwhile, added jurisdictions may require risk mitigation strategies, including local partnerships or alternative payment structures.

Need help navigating compliance risk across your market expansion pipeline?

Retail Access provides market-entry support tailored to regulatory realities, ensuring you expand into the right markets with the right safeguards.