The EUMCC is the driving force in implementing policies and enforcing law (jointly with the Court of Justice) in tackling the menace of Money Laundering and other related illicit financial activities in the European Financial Institutions.
Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking. Money laundering conceals the source of illegal proceeds so that the money can be used without detection of its criminal source.
Financial institutions — including the expanding network of money services businesses (MSBs) — have been both witting and unwitting participants in laundering activities. Banks have been major targets in laundering operations because they provide a variety of services and instruments, including cashier’s checks, traveler’s checks, and wire transfers, which can be used to conceal the source of illicit proceeds. Similarly, criminals use MSBs — establishments that provide money orders, traveler’s checks, money transfers, check cashing, currency exchange, and stored value services — to hide or disguise the origin of funds derived from illegal activity.
In order to protect themselves, and to support national and international efforts against financial crime, it is important that financial institutions know how money laundering schemes can operate.
And also have information on money laundering laws, discusses actions taken in the international arena, describes several schemes that have involved financial institutions, and gives examples of certain warning signs that may help financial institutions protect themselves against money launderers and other criminals.