Members' Research Service By / December 22, 2021

Proposal for a regulation to fight money laundering and counter terrorist financing [EU Legislation in Progress]

Money laundering is a global phenomenon. Its exact scope can only be assessed roughly, with some estimates putting it in the range of 2 to 5 % of global GDP annually

@ Stuart Miles / Adobe Stock

Written by Piotr Bakowski (1st edition).

On 20 July 2021, the European Commission presented a package of legislative proposals in the area of anti-money-laundering efforts and countering the financing of terrorism (AML/CFT). The package includes a proposal for a regulation on preventing the use of the financial system for money laundering or terrorist financing. The proposed regulation would be the central element of what is commonly referred to as an EU ‘single rulebook’ on AML/CFT. Its detailed and directly applicable provisions would replace the minimum rules of the EU AML directives currently in force.

The package has been adopted in response to repeated calls by the European Parliament and the Council of the European Union to enhance the EU’s regulatory framework on AML/CFT. The aim is for the framework to become more coherent, keeping in step with technological innovations and related new forms of crime, as well as remaining in line with international standards in the field. In Parliament, the Committees on Economic and Monetary Affairs and on Civil Liberties, Justice and Home Affairs are jointly responsible for the file.

Versions

Proposal for a regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
Committee responsible:Economic and Monetary Affairs (ECON) and Civil Liberties, Justice and Home Affairs (LIBE) (jointly under Rule 58)COM(2021) 420
20.7.2021
Rapporteurs:Eero Heinäluoma (S&D, Finland) and
Damien Carême (Greens/EFA, France)
2021/0239(COD)
Shadow rapporteurs:Ralf Seekatz (EPP, Germany); Franco Roberti (S&D, Italy); Dragoş Pîslaru (Renew, Romania); Ramona Strugariu (Renew, Romania); Kira Marie Peter‑Hansen (Greens/EFA, Denmark); Jean-Paul Garraud (ID, France); Jadwiga Wiśniewska (ECR, Poland); Roberts Zīle (ECR, Latvia); Clare Daly (The Left, Ireland); Martin Schirdewann (The Left, Germany)Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Publication of draft report
Stage: EESC

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