Financial Crime World

Here is the rewritten article in Markdown format:

Risks Lurking Within: Supranational Threats Exposed in EU Report

A newly released report by the European Commission has shed light on the alarming interrelationships between threats and vulnerabilities across various Member States. The first report of its kind, published in June 2017, revealed a vast mapping of risks by field of activity and identified common methods used for money laundering.

The Need for Urgent Action

The report highlighted the need for urgent action to mitigate these risks, as many Member States were unaware of the threats facing their own financial systems. The Commission’s recommendations have since been met with varying degrees of implementation across the EU, leaving some countries exposed to continued risk.

Threats Exposed

Four key reports have been released, each highlighting a different aspect of the anti-money laundering (AML) system:

Supranational Risk Assessment

  • Reviews the effectiveness of measures implemented by Member States in addressing initial risks identified and introduces new supranational risk factors that require immediate attention.

FIU Activities and Cooperation

  • Examines cooperation between European Financial Intelligence Units (FIUs) and FIUs in third countries, as well as tasks assigned to the European coordination and support mechanism.

Cases of Money Laundering Involving Banks

  • Investigates reasons for ineffective controls at some EU banks and proposes measures for greater harmonization of AML rules and better cooperation between supervisors and FIUs.

Interconnection of Central Bank Account Registers

  • Aims to find solutions for integrated access to information held in various registers across the EU, enabling identification of financial relationships throughout the region.

EU Legislative Framework

Recent amendments to the Fourth and Fifth AML Directives have strengthened the powers of Financial Intelligence Units (FIUs) for domestic analysis and cooperation. Regulation (EU) 2018/1672 extends measures for monitoring cross-border physical transfers of cash, while Directive (EU) 2019/1153 facilitates information exchanges between FIUs, national investigative bodies, and Europol.

The European Banking Authority has also been entrusted with new responsibilities, including conducting reviews of national supervisory authorities and applying binding mediation powers.

National Legislative Framework

Italy’s anti-money laundering legislative framework consists of:

  • Legislative Decree 231/2007
  • Recently amended by Legislative Decree 125/2019

The Financial Intelligence Unit for Italy and sector supervisory authorities have issued implementing provisions to ensure compliance with AML obligations.

Conclusion

As the report highlights the need for urgent action, it is clear that cooperation between Member States and the European Commission is crucial in addressing these supranational risks. It remains to be seen whether national legislative frameworks will align with the EU’s ambitious goals to combat money laundering and financing of terrorism.