The European Supervisory Authorities (ESAs) have jointly published an opinion addressed to the European Commission on the risks of money laundering (ML) and terrorist financing affecting the EU’s financial sector. The opinion is published pursuant to Article 6(5) of the Fourth Anti-Money Laundering Directive (4MLD).
The joint opinion finds that problems exist in key areas such as firms’ understanding of the ML and TF risk to which they are exposed and the effective implementation, by firms, of customer due diligence policies and procedures. The opinion also points to difficulties associated with lack of timely access to intelligence that might help identify and prevent terrorist financing, and considerable differences in the way Member State competent authorities discharge their functions.
In terms of future developments, there are several initiatives that are underway, which in short to medium term will serve to address many of the risks identified in the opinion. These include proposed amendments to the 4MLD which will serve to clarify the responsibilities of home and host competent authorities in relation the anti-money laundering (AML) / countering the financing of terrorism (CFT) supervision of firms operating on a cross-border basis.
In line with Article 6(5) of 4MLD, the ESAs will issue another joint opinion in two years’ time.
View Joint Committee of ESAs opinion on money laundering and terrorist financing risks, 20 February 2017