evidence: 18. For the identification of higher-risk countries, Nordic-Baltic country authorities utilize the FATF grey list, European Commission (EC) higher-risk third country list and non-cooperative tax jurisdictions lists. As required by the international standards on AML/CFT, country authorities are following the list of jurisdictions under the FATF increased monitoring. In addition, the EC produces a list of high risk third countries, which to a large extent overlap with the FATF list. The Nordic-Baltic region has minimal flows with FATF and EC higher-risk countries, representing 0.5% and 0.1% of all the region’s cross border financial flows respectively since 2013.15 The majority of the flows with these externally identified higher-risk countries are driven by flows with Turkey and United Arab Emirates, which represent more than two thirds of the flows with FATF grey list countries. As countries in the region maintain minimal flows with the countries in these higher risk jurisdiction lists, they could produce a more robust risk analysis if they develop their own understanding of their cross-border and non-resident activity risks, and add a focus on their own customized list of high-risk jurisdictions. [...] Identifying Unusual Cross-Border Flows Using Outlier Detection Methods [...] The threshold is set at 30 percent to capture cases in which the cross-border flows are significantly higher than underlying economic fundamentals.