MONEYVAL reviews focus on non-financial sectors

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

Most recently, the topic was at the centre of the Regulatory Roundtable at the ACAMS Europe’s Virtual Conference, on 18 May 2021.

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.