10 Jun 2019
The European Commission is reviewing past money-laundering cases at EU banks to assess what went wrong and decide possible tweaks to rules, an EU official said, citing Deutsche Bank and Societe General as among the screened lenders.
The review is part of a broader plan to improve the European Union’s approach to combating money laundering after a string of the bloc’s banks across Denmark, Estonia, Latvia, Luxembourg, Malta, the Netherlands and Cyprus were embroiled in scandals.
Under the plan, the European Commission is assessing cases between 2012 and 2018 with the aim of producing a report this summer that identifies the factors that contributed to the banks’ failure in preventing financial crime.
While it is normal for the EU to examine industrial practices before deciding possible rule changes, the assessment of money-laundering cases shows the scale of the problem and the questions facing regulators, given many of the cases erupted after a series of legislative reforms.
Missions to EU states are under way, the official said, without clarifying whether reviews are conducted at the banks themselves or only with their national supervisors. The Commission declined to comment on this point.
By Francesco Guarascio, Reuters, 6 June 2019
Read more at Reuters
Advance your CPD minutes for this content, by signing up and using the CPD WalletFREE CPD Wallet