In the past ten years, the bank laundering rules have changed drastically.

Money laundering is when illegal money tries to be accepted into the economy through various financial transactions. This can be anything from placing money in an account to making multiple transactions, making it difficult to track where the money came from. This practice poses a serious threat to financial stability and integrity because it can promote criminal activities such as drug trafficking, terrorism and corruption. Over the past ten years, authorities have tightened anti-money laundering rules for banks in response to this danger.

Updated laws and regulations

The EU's fourth Money Laundering Directive was adopted in 2010, and it was implemented in most European countries in the following years. To prevent money laundering, the directive required identification of customers, reporting of suspicious activities and increased supervision of financial institutions. This was later supplemented by the EU's Fifth Money Laundering Directive from 2018, which took further steps to combat money laundering and terrorist financing.

Higher fines and penalties

In addition, the number of fines imposed on banks and financial institutions that violate anti-money laundering rules has increased over the past ten years. When banks do not comply with the rules for reporting suspicious activities or insufficient control measures, they can risk fines of several million euros. Money laundering can also lead to prison terms.

Increased supervision and control

The tightened rules and sanctions have increased supervision and control of financial institutions. Authorities have stepped up inspections and investigations of banks and financial institutions to ensure they comply with money laundering rules. In addition, the supervisory authorities have cooperated internationally to combat money laundering.

More focus on new technologies

There has also been an increased focus on new technologies and their ability to combat money laundering over the past ten years. For example, blockchain technology used in cryptocurrencies can increase transparency and reduce the risk of money laundering.