The race is on: banks and regulators prepare for AML changes

June 5th, 2014

The European Union and the larger international policy community have given substantial attention to anti-money laundering regimes this year, cueing both financial institutions and regulators to begin the race to implement and enforce respectively, writes Aamir Khan, general counsel and head of London office at Clutch Group.

The Financial Action Task Force and European Commission have spearheaded these efforts.  Most recently the European Commission released the final drafts of the Fourth Money Laundering Directive (MLD4) and accompanying EU regulation. Earlier in the year, the FATF released a report detailing deficiencies in AML supervision, shining a light on weaker regimes and corporate violations.

Both developments have increased the pressure on governments and financial institutions alike, but this is just the beginning. The implementation of MLD4, adoption of EU regulations and response to the deficiencies report will almost certainly lead to future studies, examinations, increased supervision and enforcement actions.

Read the full article on Banking Technology here.