Jordiferrer [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)]
Two years ago we discussed the following EU regulatory development, in our subscription podcasts, which was largely overlooked and remains that case, to this very day. It also highlights another example of the misconceptions that exist in the alternative media and highlights the importance of what seems like an innocuous development. Subject matter which is often deemed dry is frequently the most interesting and relevant. Here is what we said two years ago.
We have recently spoken on a number of occasions with regards to major changes which are currently underway in terms of regulation and its enforcement with respect to banks, financial systems and the institutions which, notionally at least, should manage them. Whilst bodies such as the European Union are often maligned, changes are sometimes implemented, which without the appropriate context, do not convey their seismic impact going forward.
Recently the EU strengthened new rules designed to address money laundering, tax avoidance and terrorism financing. At first glance, we are conditioned to believe that this is either paying lip service to serious issues or that the rules do not to the very banking and financial institutions themselves.
The amendments to existing laws are as follows:
- Reinforcement of the risk assessment obligation for banks, lawyers, and accountants
- Setting clear transparency requirements about beneficial ownership for companies. This information will be stored in a central register and will be available to national authorities and obligated entities
- Facilitating the cooperation and exchange of information between Financial Intelligence Units from different Member States to identify and follow suspicious transfers of money to prevent and detect crime or terrorist activities
- Establishment of a coherent policy towards non-EU countries that have deficient anti-money laundering and counter-terrorist financing rules
- Reinforcement of the sanctioning powers of competent authorities
In terms of the application of risk assessment across the internal market, a report has been prepared to assist Member States to identify, analyse and address money laundering and terrorist financing risks, in the financial, non-financial sector and emerging risks such as virtual currencies or crowdfunding platforms. An assessment was made with regards to money laundering and terrorist financing risks of different sectors and financial products. It also sought to identify the areas most at risk and the most widespread techniques used by criminal organisations to launder illicit funds.
The published report includes:
- Extensive mapping of risks per relevant area and a list of the means most frequently used by criminals to launder money
- Recommendations to Member States on how to address identified risks appropriately via more robust risk analysis and supervisory actions on specific activities
- The European Commission (EC) is also committed to examining options to enhance the operation and cross-border cooperation of Financial Intelligence Units
In terms of the aforementioned regulations and report, all Member States are required to implement these changes immediately to ensure standardisation across all states to strengthen the fight against money laundering and terrorist financing across the EU. The EC will adopt the recommendations outlined in the report, including the operation and cross-border cooperation of Financial Intelligence Units and monitor the implementation of these recommendations by Member States.
These regulations have primarily been implemented to address the vast illicit funds the cabal have stolen and laundered for a myriad of covert operations. What we can say is that the size of these funds is so large that they are held in multiple institutions and across multiple jurisdictions, including offshore facilities.
What may come as a surprise is that the vast majority of these funds are held in physical notes across multiple sites. The aforementioned ruling by the EU has presented the cabal with a huge headache in that they are unable to move those funds into the financial system, because this new law has made such movement of cash impossible. In addition the cabal have a central facility they utilise for electronic transitions, which is largely unknown.
The net is closing in on the cabalists in many ways and their inability to move physical cash is one such example. The revised EU ruling is another example where assumptions that the ruling is being made by cabalists, could not be any further from the truth. As ever, it is the context which provides us with such clarity.