With corporate transparency high on the international agenda, global Anti-Money Laundering (“AML”) standards have been strengthened by the Financial Action Task Force (“FATF”) and the United Nations Convention against Corruption. Despite this, people continue to be able to launder and hide proceeds of crime and corruption around the world. Illegitimate proceeds are often concealed using shell or holding companies, foundations and trusts. European Union (“EU”) financial centres continue to attract dirty money, posing risk to the stability, integrity and reputation of EU financial sectors and markets, as well as having wider adverse economic implications.
The European Parliament has recently endorsed the proposed AMLD to clamp down on money laundering loopholes in order to ensure a consistent minimum AML standard is adopted at the national level across the EU. The proposed EU rules are to a large extent based on international standards adopted by FATF.
Please click here to read the full briefing by Anita Esslinger, Cara Dowling and Nabeel Osman.