On 26 August the Institute of International Finance (IIF) provided feedback to the European Commission on its Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing, published in May 2020.
The IIF notes that a more coordinated approach to implement and oversea the EU’s anti-money laundering (AML) and counter terrorism financing (CTF) framework is imperative. In particular, the IIF considers that there are 3 key considerations for the European Commission to keep in mind:
- Greater consistency in the AML/CTF frameworks of the EU Member States, driven through implementation of the Financial Action Task Force (FATF) guidance
- Enhancements to information sharing within the EU, partnerships between private and public companies, reforms with regards to SARs and beneficial ownership, and better use of technology; and
- Complementing the work conducted by the FATF to ensure the operating effectiveness of global AML/CTF standards
The IIF indicates that a focus on these 3 key elements, augmented with the harmonization of requirements across the EU and application of a risk-based approach to supervision, will support the international effort to combat financial crime.
