Michel Barnier welcomes the adoption of revised international standards against money laundering

The adoption of revised international standards by the Financial Action Task Force (FATF) is a welcome step in protecting the integrity of the financial markets against money laundering and terrorist financing, believes Michel Barnier. Such measures will pave the way for stronger combative actions to take place at EU level.

On 16 February 2012 the Financial Action Task Force (FATF), the global standard-setter in the fight against money laundering and terrorist financing, revised its recommendations. The revisions, made with input from governments, the private sector and civil society, provide authorities with a stronger framework in which to act and address new threats to the international financial system.

Money laundering is the ‘cleaning’ of proceeds from criminal activity, usually via the financial system. The Financial Action Task Force (FATF) considers money laundering the ‘Achilles heel’ of criminal activity, thus a fight against money laundering also helps fight crime such as robbery, extortion and fraud. What’s more, the cost of money laundering and the underlying serious crime is great, estimated at between 2 and 5% of GDP.

Barnier underlined the Commission’s commitment to maintain effective systems which prevent the abuse of financial markets by criminals and terrorists. As a founding member of the FATF, the European Commission will need to ensure that the new standards are rapidly incorporated into the existing EU legislation before implementation checks begin at the end of 2013.

Read the full press statement here

Find further information on the EU’s fight against money laundering and terrorist financing here

Find further information on the Financial Action Task Force here

Michel Barnier is a member of Friends of Europe’s Praesidium.