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The European Commission aims to intensify its scrutiny of states posing money-laundering risks, and is looking into creating a new body to help police financial crime and monitor banks more strictly, draft documents seen by Reuters show.

One document, expected to be published on Thursday, adds Panama and other countries to an existing blacklist but spares Saudi Arabia and U.S. territories that had been put on an earlier list before being shelved in the face of objections.

A second document, also due on Thursday, suggests giving the European Union more powers to tackle financial malfeasance within the bloc after a spate of scandals at large banks dented the EU's reputation.

The proposal, still subject to changes, says the EU could set up by 2023 a common supervisory body in charge of carrying out inspections at banks and possibly empowered to impose sanctions and identify suspicious payments.

The revised money-laundering list, expanded to include 22 from 16 states, is set to take effect from October.

Under the draft proposal, the Commission added Panama, the Bahamas, Mauritius, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mongolia, Myanmar, Nicaragua and Zimbabwe to its list of countries that "pose significant threats to the financial system of the Union" because of failings in tackling money laundering and terrorism financing.

Copyright Reuters, 2020

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