Anti-money laundering (AML) refers to a set of procedures, laws and regulations designed to prevent the practice of generating income through illegal actions such as market manipulation, trade of illegal goods, corruption of public funds, tax evasion, and the activities that aim to conceal these deeds.
The Three Stages of Money Laundering Process
Placement ->Layering -> Integration
AML rules and regulations
AML rules and regulations gained global recognition during the establishment of the Financial Action Task Force (FA
TF) in 1989, which set international standards for fighting money laundering. The aim of enforcement groups like the FATF is to maintain and promote the ethical and economic advantages of a legally credible and stable financial market.
Europe has also been affected in recent years by money laundering scandals involving European banks as well as numerous revelations by investigative journalists about tax evasion such as LuxLeaks and the Panama Papers.
The proceeds from money laundering in the EU in various forms are estimated at €110 billion per year, corresponding to 1% of the EU’s total gross domestic product.
On 08/03/2019 the European Parliament’s special committee on financial crimes, tax evasion and tax avoidance issued the final report on the financial police force that will operate under Europol, with its own investigative powers to carry out international investigations into tax and financial crimes. On 26/03/2019 the report was included on the European Parliament’s resolution.
Written by Foteini Stathopoulou, Communications Specialist Trainee at the Terminology Coordination Unit of the European Parliament and General Coordinator of the Schuman Trainees Committee of Luxembourg.