The European Union (EU) has stringent Anti-Money Laundering (AML) laws in place to combat financial crimes such as money laundering, terrorist financing, and tax evasion. These regulations aim to increase transparency and maintain the integrity of the financial system. However, the strict compliance requirements can also create obstacles for SWAPD users, particularly in cross-border transactions.
Cross-border transactions can be particularly challenging for SWAPD users, as different jurisdictions have different AML requirements. This may result in additional delays, costs, and complexities in completing transactions between buyers and sellers located in different countries. To mitigate these challenges, SWAPD users should research the AML requirements in both the buyer’s and seller’s jurisdictions and be prepared to provide additional documentation or information as needed.
One of the key aspects of the EU AML laws is the requirement for financial institutions to perform thorough due diligence on their customers. This process includes verifying the identities of buyers and sellers, understanding the nature of their business, and assessing the risk of money laundering or terrorist financing. For SWAPD users, this means that they might experience delays in completing transactions, as banks and payment processors conduct their due diligence. Buyers and sellers need to be prepared to provide additional documentation to verify their identities, such as passports, utility bills, and proof of income.
Current list of problematic countries for sending/receiving SWAPD bank wires:
| High-risk third country | Date of entry into force |
|---|---|
| Afghanistan | 23 September 2016 |
| Barbados | 1 October 2020 |
| Burkina Faso | 13 March 2022 |
| Cambodia | 1 October 2020 |
| Cayman Islands | 13 March 2022 |
| Democratic Republic of the Congo | 16 March 2023 |
| Democratic People’s Republic of Korea (DPRK) | 23 September 2016 |
| Gibraltar | 16 March 2023 |
| Haiti | 13 March 2022 |
| Iran | 23 September 2016 |
| Jamaica | 1 October 2020 |
| Jordan | 13 March 2022 |
| Mali | 13 March 2022 |
| Morocco | 13 March 2022 |
| Mozambique | 16 March 2023 |
| Myanmar | 1 October 2020 |
| Panama | 1 October 2020 |
| Philippines | 13 March 2022 |
| Senegal | 13 March 2022 |
| South Sudan | 13 March 2022 |
| Syria | 23 September 2016 |
| Tanzania | 16 March 2023 |
| Trinidad and Tobago | 6 March 2018 |
| Uganda | 23 September 2016 |
| United Arab Emirates | 16 March 2023 |
| Vanuatu | 23 September 2016 |
| Yemen | 23 September 2016 |
Any incoming/outgoing payments to these locations may significantly delay the transit time of your payments. SWAPD has no control over this issue. We’re regulated by the laws imposed by the European Union.
While EU AML laws are essential for maintaining the integrity of the financial system and combating financial crime, they can also present challenges for SWAPD buyers and sellers. By being aware of these challenges and taking proactive steps to address them, users can minimize the impact of AML regulations on their transactions and continue to buy and sell assets through the platform with confidence.
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