Anti-Money Laundering State Mechanisms

International Experiences, Current Issues and Future Challenges

Michele Sciurba

• Publisher: Edition Faust
• Year: 2018
• Print ISBN:
  9783945400555
• Edition: 1
• eBook ISBN:
  9783945400623
• Topic: Law
• Subtopic: Business Law
• Index: Law

This monograph offers a comprehensive analysis of the implementation of global anti-money laundering and counter-terrorism financing (AML/CTF) regulations in the United States and the European Union. It provides academics, legal professionals and interested readers with a deep understanding of the developments of the AML/CTF legal framework and guides them into the dimension of its most difficult relation with international and European human rights law.The implementation of global anti-money laundering regulations in the United Stated and the European Union has essentially led to the suspension of laws governing privacy and bank secrecy. Banks and other financial institutions now operate as an extension of law enforcement. The current Anti-Money Laundering regime jeopardises the fundamental achievements of the constitutional state. The increasing centralisation and cooperation of the competent authorities in the exchange of personal data information creates a security architecture that leads to a considerable risk of freedom restriction. In particular, the extension of the authorities´ power of intervention granting them access to citizens´ personal data without the need for initial suspicion underlines that a substantial part of the constitutional state is at risk. Furthermore, banks appear to use these policies as an instrument to clear legitimate but less profitable customers, in particular those with a migration background. Consequently, the implementation of the AML/CTF legal framework appears to follow a discriminatory path and clearly discloses incompatibility features with respect to the European Convention on Human Rights and Article 21 of the Charter of Fundamental Human Rights of the European Union. This monograph further explores factors contributing to the inefficiency of AML/CTF regulatory and legislative measures. Such factors are identified in inconsistent rules, which make the cooperation among national investigative authorities within the EU and at an international level more challenging. As a result, this work acknowledges regulatory and legislative harmonisation with respect to AML/CTF regimes as a central tool to successfully improve the effectiveness of AML/CTF regimes, while preserving the individual right to privacy, due process and civil rights.

ANNEX

List of Abbreviations

AEOI	Automatic Exchange of Information
AFSJ	Area of Freedom, Security and Justice
AML	Anti-Money Laundering
AMLD	Anti-Money Laundering Directive
ANIF	National Agency for Financial Investigations
BCBS	Basel Committee on Bankin Supervision
BIS	Bank for International Settlements
BSA	Bank Secrecy Act
BSAAG	Bank Secrecy Act Advisory Group
CAT	Center for the Analysis of Terrorism
CFR	Code of Federal Regulations
CIS	Commonwealth of Independent States
COAF	Council for Control of Financial Activities
CTF	Counter-Terrorism Financing
CTITF	Counter-Terrorism Implementation Task Force
DIN	Deutsches Institut für Normung (German Institute for Standardisation)
ECJ	European Court of Justice
ECHR	European Convention on Human Rights
ECtHR	European Court of Human Rights
ECOLEF	Economic and Legal Effectiveness of Anti-Money Laundering and Combating Terrorist Financing Policy
EITI	Extractive Industries Transparency Initiative
ESRB	European Systemic Risk Board
EU	European Union
FATCA	Foreign Account Tax Compliance Act
FATF	Financial Action Task Force (on Money Laundering)
FCA	Financial Conduct Authority
FCPA	Foreign Corrupt Practices Act
FIG	Financial Integrity Group
FinCEN	Financial Crimes Enforcement Network
FIU	Financial Intelligence Unit
FSAP	Financial Sector Assessment Program
FSB	Financial Stability Board
FSF	Financial Stability Forum
FSRB	FATF-style Regional Body
GATT	General Agreement on Tariffs and Trade
GFC	Global Financial Crisis
GG	Grundgesetz (Basic Law)
HACC	High Anti-Corruption Court
HBMX	HSBC Mexico S.A. Banco
IEEPA	International Emergency Economic Powers Act
IMF	International Monetary Fund
IOSCO	International Organisation of Securities Commissions
ISO	International Organisation for Standardisation
JCPOA	Joint Comprehensive Plan of Action
KWG	Kreditwesengesetz (Banking Act)
KYC	Know-Your-Customer
ML	Money Laundering
MSB	Money Service Business
NABU	National Anti-corruption Bureau of Ukraine
NBU	National Bank of Ukraine
NCA	National Crime Agency
NCCT	Non-Cooperative Countries and Territories
NGO	Non-Governmental Organisation
NRC	National Reform Council
OECD	Organisation for Economic Co-operation and Development
OFAC	Office of Foreign Assets Control
OLAF	European Anti Fraud Office
PEP	Politically Exposed Person
PETROBRAS	Petróleo Brasileiro S.A.
POCA	Proceeds of Crime Act
PSI	Permanent Subcommittee on Investigations
RBA	Risk-Based Approach
ROSC	Report on the Observance of Standards and Codes
RFPA	Right to Financial Privacy Act
SAR	Suspicious Activity Report
SEC	Securities and Exchange Commission
TBTF	Too-big-to-fail
TF	Terrorist Financing
TFEU	Treaty on the Functioning of the European Union
TFTP	Terrorist Finance Tracking Program
UK	United Kingdom
UN	United Nations
UNCAC	United Nations Convention against Corruption
US	United States
USC	United States Code
WB	World Bank
WTO	World Trade Organisation

Index

Administrative Corruption 104-107

AEOI see Automatic Exchange of Information

AFSJ see Area of Freedom, Security and Justice

AML Legislation see Anti-Money Laundering Legislation

AML/CTF Legislation see Anti-Money Laundering / Counter-Terrorism Financing Legislation

AML/CTF Procedure see Anti-Money Laundering / Counter-Terrorism Financing Procedure

AMLD, 3rd see Anti-Money Laundering Directive, 3rd

AMLD, 4th see Anti-Money Laundering Directive, 4th

AMLD, 5th see Anti-Money Laundering Directive, 5th

ANIF see National Agency for Financial Investigations

Anti-Fraud Office 44

Anti-Money Laundering / Counter-Terrorism Financing Legislation 5-7, 57-60, 62, 124

Anti-Money Laundering / Counter-Terrorism Financing Procedure 120

Anti-Money Laundering Directive, 1st 21

Anti-Money Laundering Directive, 2nd 15

Anti-Money Laund...

Table of contents

• Cover
• Title
• Copyright
• Contents
• Preface
• I. Theoretical and Methodological Aspects of Anti-Money Laundering State Regulation: The US Experience
• II. The Global Financial Crisis’ Worldwide Impact on the Implementation of Anti-Money Laundering Standards in the OECD Countries
• III. Anti-Money Laundering and Counter-Terrorist Financing State Mechanisms in the European Union
• IV. The Fourth Anti-Money Laundering Directive: EU Policy Undermining The Rights To Privacy and Data Protection of EU Citizens
• V. Human Rights Violations and Discriminatory Side Effects in the Fight against Terrorism: Current Anti-Money Laundering and Counter-Terrorism Financing Policies in the UK
• VI. International Institutional Cooperation and Standard Setting in the Fight against Money Laundering and Terrorism Financing
• VII. Corruption in the Ukraine, Brazil and Equatorial Guinea: Economical, Social And Political Consequences
• VIII. The Global Impact of the Growing Compliance Industry on Financial Institutions in the Fight against Money Laundering, Terrorism Financing and Tax Evasion
• Annex
• Afterword