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Regulatory focus on money laundering in non-financial sectors has increased steadily over the past few years.

During the session, Andrew Le Brun, Deputy Executive Secretary of MONEYVAL, said that lack of extensive AML controls in non-financial sectors is one of several problems leaving “room for improvement” across the EU.

MONEYVAL is also known as the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. A permanent monitoring body of the Council of Europe, its primary function is to assess European countries’ compliance with international AML/CFT standards and the effectiveness of their implementation.

Typical non-financial businesses that present a heightened risk of money laundering include real-estate agencies, law firms and accountancy firms. Regulators often refer to them as DNFBPs, which stands for “Designated Non-Financial Businesses and Professions“.

As reported in AML Intelligence, Le Brun noted that some firms were still “coming to terms,” with the new AML requirements, often struggling to properly follow the risk-based approach championed by MONEYVAL and FATF.

MONEYVAL’s current round of reviews is set to last until 2024. The agency has already completed 19 of 36 assessments of member states’ AML/CFT approaches and enforcements.

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Last updated on March 21st, 2024 at 02:04 pm

Claus Christensen

Claus Christensen is the CEO & Co-Founder of Know Your Customer. His vast array of previous experiences includes founding a technology company that develops email server infrastructure products for 60,000+ global customers and serving as VP Electronics at Thielert Aircraft Engines. A regular contributor to leading industry publications and a recognised expert in the anti-money laundering and financial regulation space, Claus is also the host of the RegTalks podcast and a senior lecturer of the Centre for Finance, Technology and Entrepreneurship (CFTE)’s RegTech Course.