DEVELOPMENTS IN EUROPEAN ANTI-MONEY LAUNDERING
R&C: Could you provide a general overview of money laundering activity in Europe? What trends have you observed in recent years?
Meakin: Ilicit activity continues to be a prevalent issue. Over the last few years, money laundering has increased and, according to Europol, around 1 percent of the European Union’s (EU’s) annual gross domestic product is “detected as being involved in suspect financial activity”. This is due to the expanding nature of predicate offences moving from traditional nefarious activity of crime and drug-related offences to more niche and intricate methods which technological advancement has nurtured. There is an increased risk presented by the surge in popularity of virtual currencies that allow for increased anonymity. Moreover, most recently, the change in behaviours due to the coronavirus (COVID-19) pandemic has led to new money laundering activity.
Huber: Anti-money laundering (AML) is and remains a highly critical issue in Switzerland as a leading global cross-border wealth management hub for private clients. A look at the latest annual report from the Swiss Financial Market Supervisory Authority (FINMA) shows that the Anti-Money Laundering Act (AMLA) is not only one of the focus points of conduct supervision by FINMA but also plays a central role in enforcement. The recently published ‘FINMA Risk Monitor’ also highlights the fact that Switzerland is particularly exposed to money laundering risk. New customers of the Swiss asset management industry are often found in emerging markets where there is a significant risk of corruption.
Apr-Jun 2022 Issue
Mayer Brown
Norton Rose Fulbright LLP
Pestalozzi
Quinn Emanuel Urquhart & Sullivan LLP