Introduction
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.
