European Commission announces Anti-Money Laundering Regulation

At the end of a report on anti-money laundering (AML) scandals involving EU credit institutions, the European Commission announces the plan to transform the Anti-Money Laundering Directive (AMLD) into a Regulation. An explanation why criticism in regard of credit institutions is a reason for amending AML legislation for all companies is not given.

It shows that inadequately implemented rules for credit institutions may lead to an additional regulatory burden for the many other companies that have anti-money laundering obligations.

Worrying is that the Commission in its report does not pay any attention to the practical aspects of organising AML-compliance. E.g. is there nothing on the IT-challenges in regard of transaction monitoring and customer due diligence, neither is the Commission interested if it is possible to have enough qualified personnel, or in the costs of AML-compliance. New forms of discrimination that are caused by KYC, are neglected.

My impression is that the Commission is much too optimistic about what credit institutions are able to accomplish.

Sector organisations are advised to read the report carefully, comment on it, monitor the development of EU-plans around AML very carefully and to respond in time to ill-founded proposals.

 

PS That even credit institutions have grave problems with implementing AML-legislation, should be a sign that Europe asks something impossible from companies. Of course the Commission buries its head in the sand and repeats the AML-mantras, instead of convincing FATF  it is taking the wrong direction and completely revising the system.

 

More information:

The dark side of AML:

Further AML reading on this blog:

Over Ellen Timmer, advocaat ondernemingsrecht @Pellicaan

Verbonden aan Pellicaan Advocaten, http://www.pellicaan.nl/, kantoor Rotterdam, telefoon 088-6272287, fax 088-6272280, e-mail ellen.timmer@pellicaan.nl ||| Weblogs: algemeen: https://ellentimmer.com/ || modernisering ondernemingsrecht: http://flexbv.wordpress.com/
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