European Union anti-money laundering supervision in crisis: an analysis of the Commission’s measures to enforce the European Union’s supervisory architecture through COM(2018)645 and COM(2018)646

Abstract

A series of recent money laundering scandals in multiple European Union countries have underlined the shortcomings of the European Union’s supervisory framework for anti-money laundering. In the European Union, where the free movement of capital and people are secured in a Single Market, the phases of money laundering take advantage of Member States with both weak and strong anti-money laundering schemes. On September 12, 2018, the Commission gave out a Communication to amend the framework for anti-money laundering and prudential supervision in the Union. Concurrently, the Commission gave out a legislative proposal for amending the founding regulations of the European Supervisory Authorities. The objective of this thesis is to analyze the proposals. In particular, the thesis analyzed the long-term, substantial amendments, which are to entrust the European Banking Authority with anti-money laundering supervision and considering transforming the Anti-money laundering directive into a Regulation. In order to do this, the thesis first outlines the current framework for anti-money laundering and prudential supervision in the Union and identifies weaknesses in it. After introducing the proposed measures, the thesis critically analyzes them and proposes further measures.