EU Parliament Approves Controversial Update to High-Risk Money Laundering List Amid Russia Dispute

In a contentious vote marked by geopolitical undercurrents and last-minute political maneuvering, the European Parliament has voted in favor of updating the EU’s list of countries deemed high-risk for money laundering and the financing of terrorism. The decision follows a commitment from the European Commission to assess Russia’s compliance failures by the end of the year—an assurance made just hours before the critical vote.

The revised list, proposed by the EU executive in June, sparked heated debate among lawmakers after it recommended the removal of the United Arab Emirates and Gibraltar from the bloc’s high-risk register while conspicuously omitting Russia, despite its increasing international isolation and suspension from global financial oversight bodies.

Russia’s exclusion from the blacklist came under particular scrutiny given its suspension from the Financial Action Task Force (FATF) in 2023. The global watchdog, which monitors compliance with anti-money laundering and counter-terrorism financing standards, halted Russia’s membership in response to its full-scale invasion of Ukraine. However, efforts to formally blacklist Moscow stalled due to resistance from the BRICS nations—Brazil, India, China, and South Africa—who blocked consensus.

According to internal EU communications, the Commission told lawmakers earlier this month that its review of Russia’s shortcomings had been complicated by the breakdown in information-sharing with Moscow. This lack of cooperation has made it difficult for EU authorities to independently assess whether Russia is meeting international anti-money laundering standards. Nevertheless, mounting pressure from MEPs across the political spectrum forced the Commission to act. At the eleventh hour, it pledged to deliver a legislative act reviewing Russia’s case before the close of the year.

“The Commission has listened to our concerns and we will hold them to this commitment,” said Irish liberal lawmaker Billy Kelleher, underlining the gravity of the Parliament’s concerns and the political weight behind the vote.

On Wednesday, 369 MEPs backed the updated list, while 264 voted against it and 55 abstained. Despite the margin of support, the vote underscored deep divisions within the chamber. Opposition came from both ends of the political spectrum, including the Left, the Greens, and segments of the Socialists & Democrats, who alleged that geopolitical motivations—rather than objective compliance criteria—were influencing the EU’s decision-making.

The removal of the United Arab Emirates from the high-risk list was hailed by Commission Financial Services chief Maria Luís Albuquerque, who said that the Gulf state had demonstrated “tangible progress” in its anti-money laundering framework. Yet critics saw the move as conveniently timed, pointing to the EU’s recent decision to launch negotiations for a free trade agreement with the UAE.

“We look forward to building on this momentum and continue to advance the UAE-EU strategic partnership,” said Mohamed Al Sahlawi, the UAE’s ambassador to the EU, in response to the Parliament’s decision. His remarks reflect the Emirates' broader diplomatic push to deepen economic and political ties with the bloc following its removal from the blacklist.

While the updated list moves forward, the promise to evaluate Russia’s compliance deficiencies hangs over the Commission. With lawmakers expecting concrete action before the end of 2025, the credibility of the EU’s financial oversight mechanisms now rests on whether the Commission follows through on its pledge. The balance between geopolitical strategy and regulatory integrity remains precarious, and the next steps on Russia will likely define the EU’s stance on global financial crime enforcement in the months ahead.

By fLEXI tEAM