The European Commission on Wednesday said KSA should face stricter oversight to combat illicit financial flows. The measures will raise the regulatory hurdles for European banks doing business with clients in affected jurisdictions. The list of countries included in the blacklist must now be formally endorsed by the bloc’s national governments and the EU Parliament before taking effect. The addition of KSA also reflects concerns in Brussels that the Kingdom poses a higher risk in relation to the financing of terrorist entities, according to an internal commission document that was seen by Bloomberg. The list will be subject to continuous monitoring and revisions, meaning that countries can be taken on or off, depending on their regulatory safeguards against illicit activities.