US, European banks divided over 'high-risk jurisdiction' list of nations

Sebi had asked global custodians to draft a list of high-risk jurisdictions

Global custodians are at loggerheads among themselves over preparing a list of nations that should be classified as “high-risk jurisdictions”. Sources said US-based banks had pushed for the inclusion of Mauritius in the list, but a few European ones are opposed to it. There have also been disagreements over other jurisdictions, such as the United Arab Emirates, Cayman, and Saudi Arabia, in the absence of standard rules.

Investments from destinations tagged as “high-risk” are subject to stricter regulations, which include lower investment ceiling. Typically, any entity which owns 25 per cent or more in a fund is considered to be