Brussels: The European Commission has officially categorized Russia as a 'high-risk' country due to significant shortcomings in its anti-money laundering and counter-terrorist financing frameworks. This designation, announced on Wednesday, underscores the EU's concerns about Russia's financial practices.

According to Anadolu Agency, the European Commission's decision followed a rigorous technical assessment. This evaluation utilized "well-defined methodologies" and incorporated data from public sources, member states' authorities, and the European External Action Service. The assessment concluded that Russia meets the criteria for being labeled a high-risk third country.

The European Commission emphasized its commitment to maintaining the integrity of the EU financial system by adding Russia to its list of high-risk jurisdictions. EU Economy Commissioner Valdis Dombrovskis highlighted the importance of this action in a post on the social media platform X, stating it ensures EU financial and non-financial operators conduct stricter checks when engaging with Russian entities.

Entities within the EU's anti-money laundering framework are now mandated to apply enhanced vigilance in transactions involving these high-risk jurisdictions. The newly delegated regulation is set to take effect after undergoing scrutiny by the European Parliament and the European Council. This review period will last up to one month, with the possibility of an extension for another month.

As of now, Russia has not provided an official response to the European Commission's designation.