EU drafts new money laundering laws following bank scandals
10 Sep 2018

EU regulators have drafted proposed changes to existing anti-money laundering (AML) rules, following a spate of money laundering scandals at banks in a number of European countries, including Latvia and Denmark.

The plans are understood to include new guidelines on how banks should address money laundering and call for more cooperation between the financial crime agencies within the bloc.

They also call for more powers to be given to the European Banking Authority and include proposals for a single EU AML supervisor, but this is likely to be implemented at a much later date if the proposals go ahead, according to Reuters which reportedly saw the draft document.

On Friday European Central Bank board member Benoit Coeure expressed his backing for a single AML supervisor, saying:

“We support any initiative that leads to a more harmonized and more coordinated approach to anti-money laundering. Ideally this would be a single agency.”

A spokesman for the European Commission said in a statement to KYC360 that it is closely following the correct implementation of the 4th Anti-money laundering directive, however “a number of high profile cases recently have raised some questions about effectiveness of the supervision and enforcement of these rules, which is in the hand of national authorities.

“In May, we set up a working group bringing together the European Supervisory Authorities to improve the coordination of Anti-Money Laundering supervision of financial institutions,” he said.

“The working group prepared a reflection paper that has now been sent to Member States and the European Parliament to seek views on possible next steps to enhance the cooperation between the prudential and the Anti-Money Laundering supervisors in the EU.”

The spokesman declined to comment further on reports of the details of the proposals drafted by regulators.

Irene Madongo

Read more:

Confessions of a compliance officer: The risk-based approach goes wrong

EU adopts 5AMLD: New anti-money laundering rules sail through Council

British MPs call for investigation into ‘untouchable’ senior bankers

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