Preventing money laundering and terrorist financing across the EU

How does it work in practice?

EUROPEAN UNION

European Banking
Authority Sets
MEMBER STATE B
guidelines
Financial Intelligence Unit
European Banking Authority
sets guidelines on supervision
of financial institutions and
identifies breaches of EU law

MEMBER STATE A MEMBER STATE C

Financial Intelligence Unit
Anti-money laundering supervisors
AML Supervisor supervise whether obliged entities
carry out their tasks well

Information
Obliged Entities sharing
High-Risk Third (Financial Institutions /
Countries Designated Non-Financial
Business and Professions)

Transactions in EU and from

Other risky Enhanced third countries via bank
situations customer lawyers, accountants
due
diligence

For transactions Financial Intelligence Law enforcement/

Enhanced
monitoring
European Commission
determines the list of high-risk
third countries, presenting a
money laundering/terrorist
financing risk for the Union
financial system
Other risks identified by Member
States under national risk
assessment or by European
Commission under
supranational risk assessment
Suspicious Competent authority
from high-risk third Transaction Unit
countries or in other Reporting
risky cases Customer Financial Intelligence Unit (FIU) If analysis confirmed, Financial
due analyses the report and shares Intelligence Unit sends it to law
diligence If suspicion with FIUs in other Member enforcement, supervisor or
Monitoring by obliged
entities who should identified, obliged States other competent authority
ensure they know entity sends report to Financial Intelligence Unit has
who their customer is the Financial tools to help analysis:
Intelligence Unit in beneficial ownership registers
their Member State (who is the real beneficiary of a
company/trust); and central
Customers bank account registers (who
has which account and where)