Anti-money Laundering Crackdown on European Union Banks

Forex News

After the collapse of Latvia's ABLV and the freezing of operations at Malta's Pilatus Bank, the EU banks remain under pressure. Both banks were at the center of money laundering allegations by US authorities. The two cases raised wider concerns over national oversight in smaller EU states.

Mario Centeno (head of the Eurogroup of Eurozone finance ministers) said, that a report on strengthening oversight will be prepared in July, paving the way for "further measures by end 2018".

Newly-adopted anti-money laundering rules, set to enter into force by 2020, foresee the establishment in all EU countries of centralized bank account registers to gather financial data. Some states have already expressed a will to establish a new body to counter money laundering, while others favor giving more power to one of the existing EU regulators, like the EBA. Germany and France, the euro zone's largest members, last week called for an EU deal by the end of the year to measure the money-laundering risks within the banking sector.