The European Commission (EC) has added Ghana to the countries that pose money-laundering risks to the commission.

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

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.

Banks and other financial and tax firms will be obliged to scrutinise more closely their clients who have dealings with these countries.

Companies in the above countries are also banned from receiving new EU funding with effect from October.

Countries who were already on the list are Afghanistan, Iraq, Vanuatu, Pakistan, Syria, Yemen, Uganda, Trinidad and Tobago, Iran and North Korea.

All countries but North Korea have committed to changing their rules in order to better tackle money laundering and terrorism financing.