Review article
NAVIGATING THE CHALLENGES OF THE FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING IN THE EUROPEAN UNION
Ivica Kustura
; North University
*
* Corresponding author.
Abstract
This paper analyses the current anti-money laundering and counter-terrorist financing regulations applicable to businesses and organisations in the European Union. Key terms like money laundering, terrorist financing, and the types of entities concerned are explained. The paper then examines the processes for assessing risks, including how high-risk countries are identified and the steps which are taken to apprehend those risks. A significant portion thereof is dedicated to the due diligence requirements companies must follow when onboarding new customers and monitoring existing ones. This
includes verifying customer identities, understanding who truly owns or controls the customer's business, and ongoing monitoring obligations. The involvement of external parties in this procedure and the necessity for clarity concerning beneficial ownership data is examined.
Additionally, the paper offers in-depth analysis on the essential role of Financial Intelligence Units (FIUs) and outlines the methods by which authorities coordinate and share information to counter financial illicit activities. It also discusses duties concerning maintaining records, regulatory oversight, and the consequences and penalties for failing to adhere to regulations. Furthermore, as it investigates the regulatory framework within the EU, the article
candidly recognizes the challenges faced by businesses in conforming to these complex regulations, including the significant costs associated with the compliance and administrative duties.
Keywords
Financial Action Task Force; European Union; anti-money laundering; counter-terrorist financing; Financial Intelligence Unit
Hrčak ID:
343985
URI
Publication date:
15.4.2024.
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