Large-scale money laundering investigations have been the drivers to improving the safeguards for the overall stability of the EU’s financial sector. Beyond the implementation of the Fifth AML Directive (5AMLD), additional significant developments include the proposed EU regulation strengthening the role of the European Banking Authority (EBA) in supervising the financial institutions, the European Council’s action plan for non-legislative AML measures, and the passing of the EU Directive on combating money laundering by criminal law.
Internet and social media services have been used by terrorist and extremist groups globally to disseminate hate and funds, says the Counter Extremism Project and advocates effective national and European regulation to counter the threats – including new challenges posed by crypto-currencies for terrorist purposes.
Cryptocurrencies are seen as bringing innovation to the payments-services sector; furthering financial inclusion; and facilitating greater efficiency in cross-border transactions. However, as with other financial products and services, cryptocurrencies are also exposed to financial crime risks. The following article provides some background in relation to cryptocurrencies in general, and some insights into ongoing regulatory approaches and discussions in Europe.
This article will focus on one of the most recent initiatives by the EU, which underlines the continued importance of revising and improving existing anti-money laundering/ counter-terrorist financing (AML/CTF) legislative frameworks both within the individual member states and also in a cross-border context in terms of the cooperation between relevant national authorities.
In February 2013, the European Commission adopted two proposals: the Fourth AML Directive and a complementary regulation on what information must accompany fund transfers to ensure traceability. The European Parliament’s and European Council’s so-called “draft directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing”…