General requirements of the European Union in the field of combating money laundering and terrorist financing:
Risk assessment
On June 26, 2017, the Commission published its first Supranational Risk Assessment Report in accordance with the requirements of 4 of the Anti-Money Laundering Directive. The Commission assessed the vulnerability of financial products and services to the risks of money laundering and terrorist financing. This risk analysis is conceived as a key tool for identifying, analyzing and managing money laundering and terrorist financing risks in the EU. It aims to provide a comprehensive mapping of risks in all relevant areas, as well as recommendations to Member States, European supervisory authorities and committed organizations to mitigate these risks. This risk analysis supports Member States and stakeholders in conducting appropriate risk assessments. On July 24, 2019, the Commission published its second supranational risk assessment report.
EU list of high risk third countries
Pursuant to Article 9 of Directive (EU) 2015/849, the Commission is mandated to identify high-risk third countries that have strategic deficiencies in their anti-money laundering and terrorist financing regime. The aim is to protect the integrity of the EU financial system.
One of the pillars of European Union anti-money laundering and terrorist financing legislation is Directive (EU) 2015/849. The Directive requires banks and other gatekeepers to exercise increased vigilance in business dealings and transactions involving high-risk third countries. The types of heightened vigilance requirements are basically additional checks and controls that are defined in Article 18a of the Directive.
Further information:
EU policy on high risk third countries
| Third high-risk country | Effective date |
|---|---|
| Afghanistan | 20 September 2016 |
| The Bahamas | 1 October 2020 |
| Barbados | 1 October 2020 |
| Botswana | 1 October 2020 |
| Cambodia | 1 October 2020 |
| Democratic People's Republic of Korea (DPRK) | 20 September 2016 |
| Ghana | 1 October 2020 |
| Iran | 20 September 2016 |
| Iraq | 20 September 2016 |
| Jamaica | 1 October 2020 |
| Mauritius | 1 October 2020 |
| Mongolia | 1 October 2020 |
| Myanmar | 1 October 2020 |
| Nicaragua | 1 October 2020 |
| Pakistan | 2 October 2018 |
| Panama | 1 October 2020 |
| Syria | 20 September 2016 |
| Trinidad and Tobago | 14 February 2018 |
| Uganda | 20 September 2016 |
| Vanuatu | 20 September 2016 |
| Yemen | 20 September 2016 |
| Zimbabwe | 1 October 2020 |
Enhancing Law Enforcement Access to Financial Information
Terrorists and criminals have demonstrated their ability to quickly transfer funds between different banks, often in different countries, but the lack of timely access to financial information means that many investigations are deadlocked. Consequently, there is a clear need for increased cooperation between the authorities responsible for combating terrorism and serious crime when financial information is a key part of the investigation.
Directive (EU) 2019/1153 expands the use of financial information by providing law enforcement agencies with direct access to the identity of bank account holders held in national centralized registries. In addition, it gives law enforcement agencies the ability to access certain information from national financial intelligence units (FIUs), including data on financial transactions, and improves the exchange of information between FIUs, as well as their access to law enforcement information necessary to carry out their tasks. These measures will speed up the investigation of criminal offenses and enable the authorities to more effectively combat cross-border crime.
- Staff Working Paper on Improving Cooperation between EU Financial Intelligence Units was published on 26 June 2017. It summarizes the 2016 mapping of FIUs under the FIU platform, which identifies barriers to access, exchange and use of information, as well as barriers to operational cooperation between FIUs.
- Staff Working Paper on Compliance with Cross-Border Banking Groups at Group Level
Supervision and regulation technical standards
The Commission services work closely with European supervisory authorities in the implementation of AML / CFT rules. The Joint Committee of European Supervisors on AML / CFT issues guidelines and opinions to help national competent authorities understand regulatory expectations.
Anti-money laundering goals and objectives
The Joint Committee works in the areas related to combating money laundering and terrorist financing (hereinafter - AML). In particular, these are:
- Acts as a forum for the exchange of experience and supervision practices between supervisors regarding AML;
- Provides regulatory and supervisory input to supervisory measures against money laundering in accordance with the Anti-Money Laundering Directive (Directive (EU) 2015/849);
- Provides regulatory and supervisory input to supervisory measures arising from other regulations affecting money laundering, such as the relevant parts of the Payment Services Directive (Directive (EU) 2015/2366), the Electronic Money Directive (Directive 2009/110 / EC) and the Bank Transfer Regulation (Regulation (EU) 2015/847);
- Provides expertise for material that the Committee on the Prevention of Money Laundering and the Financing of Terrorism (CPMLTF) or other bodies will request from the EBA, ESMA and EIOPA through their Joint Committee; and
- Performs any other specific AML-related tasks set and agreed by the ESAs governing bodies, as appropriate.
The Joint Committee assists ESAs to meet these challenges:
- Prepare joint positions (Article 56 of the ESA Regulation) on anti-money laundering issues;
- Prepare general instruments (Article 56 of the ESA Regulation), e.g. draft regulatory technical standards as defined in Articles 45 (6) and (10) of the Anti-Money Laundering Directive (Directive 2015/849 / EC), as well as guidelines principles and guidelines for combating money laundering;
- Prepare opinions (based on Article 34 of the ESA Regulation) on anti-money laundering, either on its own initiative or at the request ("Consultation") of the European Parliament, Council or Commission; and make decisions (Article 20 of the ESA Regulation) in the field of combating money laundering.
As part of its legal obligations under the 4th Anti-Money Laundering Directive, the Commission has adopted Delegated Rules for the following regulatory technical standards that have been developed by the European Supervisory Authorities (ESA).
- Regulatory technical standards for minimum actions and the type of additional measures that credit and financial institutions must take to reduce the risk of money laundering and terrorist financing in some third countries.
- Regulatory and technical standards regarding the criteria for the designation of central contact points for e-money issuers and payment service providers, and the rules for their functions
The European Commission issued an opinion on 8 November 2018 in exercise of its powers under the EBA Regulation, requiring the Maltese supervisory authority to combat money laundering (Financial Intelligence Analysis Group) to continue to take additional measures to fully comply with its obligations under the fourth -Directive on money laundering.
Adoption of targeted amendments to the three Regulations on the Establishment of Supervisory Bodies.
The European Commission adopted on 24 July 2019. a report that evaluates recent alleged money laundering cases involving EU lending institutions.
European cooperation
An The Panel of Experts on Anti-Money Laundering and the Financing of Terrorism meets regularly to exchange views and assist the Commission in defining policy and drafting new legislation.
- A The Committee on the Prevention of Money Laundering and the Financing of Terrorism may also be convened to give its opinion on the implementation of the measures proposed by the Commission.
- The European Commission also organizes meetingsExpert Groups (EU FIU Platform) , bringing together FIUs to facilitate collaboration between national FIUs and provide advice and expertise to the Commission.
- European Commission organizes meetings Know Your Customer (KYC) Expert Group on eID and Remote Processes , which brings together public and private experts to explore issues related to eID and remote KYC processes to provide guidance and expertise to the Commission.
International context
- FATF
The Commission is a member of the Financial Action Task Force on Money Laundering (FATF), the main international body dedicated to combating money laundering, terrorist financing and other threats to the integrity of the international financial system.. - MONEYVAL
The Commission is an observer at Moneyval, the Council of Europe body that evaluates compliance with AML / CFT standards. - EGMONT
The Commission is an observer to the Egmont Group of Financial Intelligence Units, which provides an international platform for the secure exchange of experience and financial intelligence between financial intelligence units to combat money laundering and terrorist financing.