EU AML Framework 2025
The European Union will implement a transformative AML framework in July 2025, taking a significant step in the fight against money laundering and terrorist financing. This new package, already adopted in 2024 in response to persistent vulnerabilities in the financial system and the complexity of cross-border risks, offers an ambitious overhaul of the regulatory landscape.
EU’s 15th Sanctions Package
Russia’s persistent efforts to bypass the oil price cap have prompted the European Union to take decisive action in its 15th sanctions package. This new set of measures targets loopholes that have enabled Russia to continue exporting oil and sustaining its revenues. By blacklisting 52 additional vessels—bringing the total to 79—the EU is focusing on Russia’s shadow fleet, a network of aging, underregulated ships central to its evasion strategies. This initiative has the potential to increase the cost and complexity of sanctions evasion while addressing the significant safety and environmental concerns associated with these high-risk vessels.
Risk-Based Approach Adoption
The Risk-Based Approach (RBA) is a foundational principle in modern anti-money laundering (AML) frameworks. It is about understanding the risks of money laundering and terrorist financing (ML/TF) within a business. By identifying and assessing these risks, the RBA supports an effective but also efficient allocation of resources to combat ML/TF effectively.
The Risks of Using AI in Compliance
Artificial Intelligence (AI) offers transformative potential for enhancing compliance processes, from automating routine tasks to identifying patterns in data that could indicate regulatory risks. However, the adoption of AI in compliance is not without its challenges. While the technology brings significant advantages, it also introduces risks that businesses must be mindful of to avoid regulatory and legal pitfalls.