EU Warns of Unidentified Threats and Vulnerabilities Across Member States
Introduction
The European Commission has issued a warning about unidentified threats and vulnerabilities across member states that are unable to identify themselves. In a report released in June 2017, the Commission highlighted the risks generated by these unrecognised dangers, which could have far-reaching consequences for the region’s financial stability.
The Supranational Risk Assessment
The Fifth Anti-Money Laundering (AML) Directive has extended the scope of obliged entities to include virtual currency exchangers, introduced more detailed rules on due diligence, and strengthened transparency measures for beneficial ownership of companies and trusts. However, the Commission’s latest report warns that some Member States are still struggling to identify and address these risks.
Areas of Concern
The assessment found that many countries lack effective mechanisms to detect and prevent money laundering, leaving them vulnerable to financial crimes. The report highlights several areas of concern, including:
- Cooperation between Financial Intelligence Units (FIUs) and third-country FIUs: Effective cooperation is crucial in preventing money laundering.
- Better coordination between EU FIUs: Improved coordination can help to enhance the exchange of information and prevent financial crimes.
Proposed Mechanism
To address these concerns, the Commission has proposed a new mechanism to enhance cooperation between FIUs and improve the exchange of information. The mechanism will also help develop the competences already assigned to the EU FIU Platform.
Additional Proposals
The report also examines cases of money laundering involving banks in some EU countries and draws up proposals for greater harmonization of AML rules and better cooperation between supervisors and FIUs. Furthermore, the Commission has proposed new regulations to improve monitoring of cross-border physical transfers of cash and enhance information sharing.
Conclusion
Effective implementation of AML measures requires close coordination between national authorities, EU institutions, and international partners. The Commission urges all Member States to take immediate action to address these risks and ensure the integrity of our financial system.