Arbitrage And Passporting: Authorities Sound Alarm Over EU Financial Crime

Three influential EU regulators have accused nefarious financial institutions of exploiting passporting rights to launder funds, singling out payment services as having inadequate compliance controls.

On Monday, the European Supervisory Authorities (ESAs), comprising three of the EU’s most powerful regulators, published a joint opinion on current risks around money laundering and terrorist financing in the financial sector.

After analysing information from 31 EU and EEA member states, the trio claimed that most sectors had acceptable internal and group-wide controls in place to prevent such financial crime, but payment service providers’ levels of compliance were considered “poor” or “very poor” in nine countries.

Request a Free Trial

As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.

Take a Trial