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EU tightens up on AML

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On 13th December 2023, the European Union  took a significant step forward in its fight against financial crime, especially anti-money laundering. Establishing the EU Anti-Money Laundering Authority (AMLA) is a testament to this commitment. The new body is designed to supervise and coordinate national authorities, enhancing their ability to detect and combat suspicious cross-border transactions.

The impact will be felt beyond Europe, though, and it will reach any business trading in or out of the EU.

The EU’s New Anti-Money Laundering Vigilance

AMLA is designed to be pivotal in the EU’s financial regulatory framework. In the European Council’s own words, AMLA “is the centrepiece of the anti-money laundering package, which aims to protect EU citizens and the EU’s financial system against money laundering and terrorist financing… the new authority will boost the efficiency of the anti-money laundering and countering the financing of terrorism (AML/CFT) framework… [it] will also have a supporting role with respect to non-financial sectors, and coordinate financial intelligence units in member states.”

We can expect the impact to be three-fold:

  • there will be greater focus on preventing all forms of financial crime within the European Union
  • initial emphasis will be on the forty or so European credit and financial institutions considered most at risk, but increased scrutiny will spread like a ripple in a pond to include more
  • which, in turn, will cover funds moving in and out of the EU

Direct Impact on American Businesses and Financial Institutions

American entities doing business in Europe (anyone in financial services and some other businesses too) will encounter a new level of regulatory scrutiny. EU laws are unlikely to change soon. But bureaucracy might increase and financial transactions may well be subject to more rigorous checks within existing frameworks.

Navigating this changing environment poses a challenge for US businesses and financial institutions. The intricacies of complying with diverse regulatory requirements across jurisdictions require a nuanced and robust approach. US businesses will need to at least review their dual-compliance policies to reduce the risk of accidental non-compliance. Addressing this challenge head-on requires an optimal toolkit of services. New provision will need to work fluidly across jurisdictions to ensure adherence to stringent compliance on both sides of the Atlantic.

Future-Proofing Transatlantic Trade with Compli

Such a solution is Compli, from Essiell Compli. One of its key features is its innovative ‘global person’ concept. This approach amalgamates data from multiple databases, creating extensive customer and business profiles. Such detailed profiling significantly reduces the risk of oversight, enhancing security against financial crime. For collaborating organisations, this methodology extends to break down data silos and the risks of undetected financial crime are further reduced .

Compli’s adaptability is another strength. Whether it’s a small enterprise or a large corporation, Compli’s scalable and customizable nature allows for tailored compliance solutions. It ensures that every organization, irrespective of its size, can meet stringent regulatory demands efficiently.

In a future where financial regulations are expected to be applied more effectively, Compli provides forward-thinking capabilities. It offers cutting-edge KYC and 24/7 behaviour checking. Users will not only be compliant today but they’ll be prepared for regulatory evolutions tomorrow too.


EU greenlights creation of anti-money laundering watchdog, euro-news, December 13, 2023

Anti-money laundering: Council and Parliament agree to create new authority, European Council, December 13, 2023

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