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As of 2024, according to Česká sporitelna, the following countries in Europe are deemed high-risk for conducting international payment transactions:
- Afghanistan, Albania, Anguilla, Antigua and Barbuda, Armenia, Aruba, Azerbaijan, Bahamas, Barbados, Myanmar, Belize, Belarus, Bermuda, Bosnia and Herzegovina, British Virgin Islands, Cook Islands, Côte d’Ivoire, Democratic Republic of the Congo, Egypt, Eritrea, Gibraltar, Grenada, Guernsey, Guinea, Guinea-Bissau, Guyana, Haiti, Iraq, Iran, Jersey, Cayman Islands, Cambodia, Colombia, Democratic People’s Republic of Korea, Cuba, Liberia, Libya, Maldives, Malta, Morocco, Marshall Islands, Montserrat, Nauru, Nepal, Nigeria, Niue, Netherlands Antilles, Pakistan, Papua New Guinea, Peru, Equatorial Guinea, Russia, Rwanda, Seychelles, Sudan, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Syria, Tunisia, Turks and Caicos, Turkmenistan, Uganda, Uzbekistan, Vanuatu, Yemen, Zimbabwe.
These states are categorized as high-risk due to the following factors:
- High levels of domestic crime: Particularly driven by corruption and money laundering, increasing the risk of fraud and other financial crimes associated with international payment transactions.
- Unstable political situations: This can pose a danger to international payment transactions. For instance, a political crisis in high-risk countries might lead to the closure of banks or other financial institutions, complicating or making international payments impossible.
- Imperfections in the legal system: This can hinder or make it impossible to protect the rights and interests of participants in international payment transactions. In the event of a dispute, obtaining judicial protection may be difficult or impossible.
Engaging in international payment transactions with these countries carries an elevated risk of fraud, fund theft, and other financial crimes. Therefore, before undertaking such transactions, it’s crucial to thoroughly research information about the recipient country and take appropriate security measures.
Financial institutions conducting international payment transactions should consider the nuances associated with such operations, especially when carried out in high-risk countries.
To minimize potential dangers, financial institutions may:
- Establish additional customer verification procedures.
- Take measures to protect information about payment transactions.
- Invest in the development and implementation of technologies that help detect and prevent financial crimes.
