CrimProf Blog

Editor: Kevin Cole
Univ. of San Diego School of Law

Wednesday, August 9, 2017

Borlini & Montanaro on EU Law Against Criminal Finance

Leonardo S. Borlini and Francesco Montanaro (Bocconi University, Angelo Sraffa Department of Legal Studies and Université Paris II - Panthéon-Assas, Students) have posted The Evolution of the EU Law Against Criminal Finance: The 'Hardening' of FATF Standards within the EU (Georgetown Journal of International Law, 2017) on SSRN. Here is the abstract:
This Article examines the recent evolution of the EU anti-money laundering (AML) and counter-terrorist financing (CTF) legislative framework, focusing especially on the rela-tionship between the main international standards in the field and the newest EU legislation. It suggests that international soft law norms—in particular the Financial Action Task Force (FATF) Standards—have had a decisive influence on the latest development of legislation at the EU level and within its member states. It further argues that mainly the preventive com-ponent of the AML/CTF legislation will be strengthened by the EU instruments adopted in mid-2015. However, this Article concludes that the adoption of global soft standards has posed significant challenges to the EU legislative framework.
The arguments are developed in four parts. The Article first highlights the main regulatory prescriptions that stem from the study of the phenomenology and the economics of AML/CFT regulation and underpin the current international regulatory paradigm. Second, it explores the evolution of the main in-ternational instruments in the field with a special focus on the role played by the FATF Rec-ommendations. It also illustrates the relation between these instruments and the adoption of the new EU AML/CFT legislation from two different, but complementary, angles: (i) noting that the current international AML/CFT framework has a multidisciplinary approach, the Article focuses on the framework’s repressive component and assessing the limits of the EU criminal approach against money laundering and terrorist financing; and (ii) examining the recent EU preventive legislation and addressing the main challenges posed to the EU legisla-tive framework when attempting to accommodate global standards, especially regarding ten-sions with fundamental freedoms and human rights protected within the European Union.

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