Financial Crime World

EU Moves to Strengthen Anti-Money Laundering Efforts with New Risk Assessment Report

The European Commission has published a new report on supranational risk assessment, aiming to identify and assess risks generated by interrelationships between threats and vulnerabilities in various Member States.

Overview of the Report

The report provides a vast mapping of risks by field of activity and lists the most commonly used methods for money laundering. The Commission has also drawn up specific recommendations for Member States indicating measures and initiatives to be undertaken for risk mitigation.

Strengthening Anti-Money Laundering Framework

The report comes as part of the European Union’s efforts to strengthen its anti-money laundering (AML) framework, which includes:

  • The Fifth AML Directive that extends the range of obliged entities to include virtual currency exchangers
  • Introduces more detailed rules on due diligence
  • Strengthens the powers of Financial Intelligence Units (FIUs)

Approved Reports

The Commission has also approved four reports on the anti-money laundering system, including:

  • One on FIU activities and cooperation
  • Another on cases of money laundering involving banks in some EU countries
  • A third on the interconnection of central bank account registers

Enhancing Cooperation between EU FIUs

The European Commission has tasked itself with assessing the effectiveness of cooperation between EU FIUs and proposing a coordination and support mechanism to enhance cross-border cooperation.

Key Areas of Concern

The report highlights several key areas of concern, including:

  • The need for greater harmonization of AML rules
  • Better cooperation between supervisors and FIUs
  • Providing integrated access to information held in various registers to identify financial relationships throughout the EU

New Measures Introduced

To address these concerns, the Commission has introduced new measures, including:

  • Regulation (EU) 2018/1672: extends the monitoring of cross-border physical transfers of cash and sharing of relevant information
    • Requires competent authorities to transmit all declarations concerning the transport of valuables for an amount of €10,000 or more to FIUs twice a month
  • Directive (EU) 2019/1153: concerns information exchanges between FIUs, national investigative bodies, and Europol
    • Provides that FIUs can make their information available to investigative bodies and must have the power to obtain investigative information from police authorities
  • Amendments to Regulation (EU) 2010/1093 on the European Banking Authority: gives the EBA new responsibilities for conducting reviews of national supervisory authorities and developing guidelines to encourage checks and develop cooperation between supervisors and FIUs

Conclusion

The Commission’s efforts are aimed at strengthening the EU’s AML framework and preventing money laundering and terrorist financing. The report is expected to be an important step in this process, providing a comprehensive overview of risks and vulnerabilities in the EU and identifying areas where action is needed.