EU vetoes plan to add Saudi Arabia to money-laundering list

Envoys from the 28 EU member states on Wednesday unanimously rejected a proposal by the European Commission to add Saudi Arabia and other nations to the bloc's money-laundering blacklist, European sources said.

The ill-fated plan, drawn up by the EU's executive arm, infuriated Saudi Arabia as well as the United States and exasperated European capitals.

The EU's 28 interior ministers will formalise the rejection at talks in Brussels on Thursday, a European source told AFP.

The EU governments "cannot support the current proposal," said a strongly worded draft statement that will be approved by the ministers.

EU diplomats have complained that the way the commission had drawn up the list was unclear and potentially vulnerable to legal challenges.

The list "was not established in a transparent and resilient process that actively incentivises affected countries to take decisive action while also respecting their right to be heard," the draft said.

The controversial list faced a diplomatic onslaught with Saudi Arabia's King Salman intervening personally to fight it, writing to European leaders to protest.

The letter, seen by AFP, called the move to list the Gulf monarchy "surprising...