The European Union(EU) has included North Korea on its blacklist of nations that pose higher risks of money laundering and terrorism financing. 

The European Commission, a governing body of the EU, on Wednesday released a list of 23 jurisdictions including Saudi Arabia, Iran, Syria, Panama and Nigeria, saying these countries’ lax oversight of terrorism financing and money laundering pose a threat to the European bloc. 

South Korea was not included on the list. 

The move will increase regulatory restrictions for European banks doing business with clients in the blacklisted countries. 

The list must now be formally endorsed by the bloc’s 28 member states and the EU Parliament before taking effect.