Policy of the CEB on non–compliant/uncooperative jurisdictions
As a multilateral development bank with a social mandate, the Council of Europe Development Bank (CEB) is committed to preserving the integrity of its operations and to supporting international standards in the areas of anti-money laundering, counter-terrorist financing and tax good governance. The Policy on Non-Compliant/Uncooperative Jurisdictions sets out the principles and conditions under which the CEB assesses and manages risks arising from jurisdictions that do not sufficiently comply with internationally agreed standards.
What the Policy covers
This Policy applies to:
- CEB-financed projects, and
- CEB treasury operations, including the purchase of securities.
It defines how the CEB identifies non-compliant or uncooperative jurisdictions by reference to assessments and lists issued by recognised international bodies, including the FATF, MONEYVAL, the OECD Global Forum and the European Union.
Core principles
Under this Policy, the CEB:
- does not enter into certain operations involving entities established in jurisdictions presenting serious and ongoing deficiencies in AML-CFT or tax good-governance standards
- applies enhanced integrity due diligence to operations with other links to such jurisdictions, following a risk-based approach
- ensures transparency and oversight, including reporting to the Administrative Council where required.
Where projects are physically implemented in such jurisdictions, the Policy allows for a carefully assessed approach in order to avoid penalising local populations, while ensuring that operations are not misused for illicit or abusive purposes.
Governance and implementation
The Policy is implemented through the CEB’s Integrity Due Diligence framework and is administered by the Office of the Chief Compliance Officer, in close cooperation with operational departments. Its application is reviewed regularly to ensure continued alignment with evolving international standards and the practices of peer international financial institutions.