Supervision and Enforcement of EU’s Anti-Money-Laundering and Countering the Financing of Terrorism

This chapter analyses the shortcomings of the current AML-CFT set up in the European Union (‘EU’) and proceeds to examine the new transformative approach to combating money laundering and financial crime through significant legislative reforms introduced in 2021. These reforms represent a paradigm shift from traditional criminal law frameworks to a more centralised, EU-wide enforcement model. Key features include the broadening of AML strategies to encompass all forms of crime without the need to prove predicate offenses, and a shift in the burden of proof to the suspects to demonstrate the legitimacy of their assets. The strategy also emphasizes the critical role of financial professionals in detecting and preventing money laundering, particularly in complex schemes associated with organised crime. Furthermore, the chapter discusses the ongoing legislative process and the potential implications of these reforms for EU integration and governance, advocating for a deeper scholarly and policy discourse on the democratic oversight of the new regulatory bodies with extensive enforcement powers.