European Regulators Warn Against Closer Financial Ties with Monaco, San Marino, and Andorra
The European Union (EU) may reconsider plans for closer economic ties with Monaco, San Marino, and Andorra due to concerns over their weak Anti-Financial Crime (AFC) and Anti-Money Laundering (AML) regulations.
Regulatory Concerns
The European Banking Authority (EBA), European Securities and Markets Authority (ESMA), and European Insurance and Occupational Pensions Authority (EIOPA) raised concerns in a letter to the European Commission. They cited the historically less rigorous financial regulations in these countries and their potential susceptibility to money laundering and other illicit activities as reasons for caution. Businesses setting up in these states to benefit from lighter financial standards could create significant risks to consumers if they sell products across the EU.
Monaco: Money Laundering Haven
Monaco, known for its reputation as a money laundering haven, garnered the most attention. The Council of Europe’s assessment earlier this year criticized Monaco’s AFC defenses severely. The signing of the new economic deal was expected shortly but the last-minute letter might prevent its implementation.
Regulatory Enforcement Actions
Financial Supervision Authority Fines LHV Pank €900,000
In Tallinn, Estonia, the Financial Supervision Authority (FSA) fined LHV Pank €900,000 for AML/CFT shortcomings.
TD Banking Group Expects US AML Compliance Penalties
Canada’s TD Banking Group expects fines and “non-monetary” penalties from US authorities regarding its AML compliance program.
Cryptocurrency Exchange Regulatory Compliance
Binance, the largest cryptocurrency exchange, announced the establishment of a Polish entity to comply with regulatory obligations and continue offering its services to Belgian users.
Upcoming Event: Fighting Online & Cyber Fraud Summit 2023
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Other News
- A former chairman of the Co-operative Bank in the UK, Paul Flowers, faces several criminal charges, including fraud by abuse of power.
- The Lebanese central bank will not print money to lend to the state or cover the economic deficit, urging leaders to adopt urgent financial reforms.
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Your team at AML Intelligence.