ISLAMABAD – Saudi Arabia faces yet another big diplomatic blow after theepisode of Jamal Khashoogi murder.

The European Commission has added Saudi Arabia to an EU draft list ofcountries that pose a threat to the bloc because of lax controls againstterrorism financing and money laundering, two sources told Reuters onFriday.

The move comes amid heightened international pressure on Saudi Arabia afterthe murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbulconsulate on Oct. 2.

Saudi authorities did not immediately respond to request for comment.

The move is a setback for Riyadh at a time when it is striving to bolsterits international reputation in order to encourage foreign investors toparticipate in a huge transformation plan and improve financial ties forits banks.