The revelations of the Panama Papers reignited the fight against money laundering. Against this backdrop, reports have come to light time and again of failures, both in the battle against money laundering and in how banks monitor sanctions violations. Financial experts have criticized lax controls and outdated IT systems; they have called for improvements to monitoring mechanisms to detect high-risk customers and transactions.
On the home stretch:
Incorporation of the Fourth EU Money Laundering Directive into National Law by Mid 2017
The European legislature concluded its work on the Fourth Money Laundering Directive and the revised Funds Transfers Regulation in 2015. The Member States will transpose the new aspects of the Directive into national law by June 2017. The Directive provides the framework for minimum harmonization. In other words, Member States may implement stricter rules. In response to the Panama Papers, certain states already have concrete action plans for a fair international taxation system and more effective action against money laundering.
New White Paper on the Fourth EU Money Laundering Directive:
Overview and Implementation in Financial Institutions
The whitepaper summarizes the key approaches contained in the new Directive. You can also find out in the paper how the required risk-based approach can be applied in practice.
In essence, the task is to expedite the automation of monitoring mechanisms for massive amounts of data and adapting in such a way that analysis finds the truly risky cases and that countermeasures can be initiated. The challenge for companies is to increase the speed and reliability of monitoring to ensure legal compliance, while at the same time working efficiently and cost-consciously.