Brussels watchers are poised for the publication of the EU Commission’s new Anti-Money Laundering (AML) proposals. After five directives the EU’s money laundering problems cannot be said to have been legislated away. According to the Centre of European Policy Studies, and European Credit Research Institute Task Force Report – ‘Anti Money Laundering in Europe, Time to get serious’ – of the 1.1 million suspicious activity reports made across Europe in 2019, only 10% were investigated by the competent authorities, and only 1.1% of the proceeds of crime were confiscated.
With the millions of Euros spent each year on AML compliance and infrastructure by Banks, Financial Institutions, and any person subject to Europe’s AML regime this news must come as a deep disappointment. Indeed, the last thing ‘subject persons’ would want are more obligations, when it appears that the authorities responsible for investigating, and prosecuting financial crime are falling well short of their purpose.
We understand that the new proposals will contain the first AML Regulation, which will take parts of the earlier Directives and bind all Member States with a common text to promote greater harmonisation and effectiveness. However, without adequate resources (skills and funds) any centralisation is destined to fail, because crime cannot be legislated away; crime is suppressed when criminals fear they will get caught.
Click on this link to learn more https://www.ceps.eu/time-to-get-serious-on-aml-policy-in-europe/