Regulatory Institutions

The following organisations play a key role in shaping Anti-Money Laundering (AML) legislation and related standards.

OECD Financial Action Task Force (FATF)

The Organisation for Economic Co-operation and Development’s (OECD) Financial Action Task Force (FATF) is an intergovernmental organization that was established in 1989 to combat money laundering, terrorist financing, and other threats to the integrity of the international financial system.

The FATF is responsible for setting international standards and developing policies to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction. It also conducts evaluations of countries’ anti-money laundering and counter-terrorist financing regimes to ensure compliance with these standards.

The FATF comprises 39 member countries and 2 regional organizations, and its recommendations are widely recognized as the global standard for anti-money laundering and counter-terrorist financing efforts. The FATF’s recommendations are designed to be adaptable to the specific risks and circumstances of each country, and are regularly updated to reflect new and emerging threats to the international financial system.

The FATF also collaborates with other international organizations, such as the United Nations, to promote the implementation of its recommendations and to ensure a coordinated global response to money laundering, terrorist financing, and other financial crimes. Through its work, the FATF plays a critical role in maintaining the integrity of the international financial system and protecting it from abuse by criminals and terrorists.

United States Department of the Treasury

The United States Department of the Treasury is a federal executive department responsible for promoting economic prosperity and ensuring the financial security of the United States. Within the Treasury Department, there are several agencies that play a key role in the fight against money laundering and terrorist financing.

Financial Crimes Enforcement Network (FinCEN): FinCEN is a bureau within the Treasury Department that is responsible for collecting, analyzing, and disseminating financial intelligence related to money laundering and terrorist financing. It also administers the Bank Secrecy Act (BSA), which requires financial institutions to maintain certain records and file reports with FinCEN to help detect and prevent money laundering.

Office of Foreign Assets Control (OFAC): OFAC is responsible for enforcing economic and trade sanctions against individuals, entities, and countries that pose a threat to US national security. It maintains a list of sanctioned individuals and entities, and financial institutions are required to screen their customers and transactions against this list to ensure compliance with sanctions regulations.

Internal Revenue Service (IRS): The IRS is responsible for enforcing tax laws and regulations in the US. In the context of AML, the IRS has the authority to investigate and prosecute individuals and entities that engage in money laundering or other financial crimes to evade taxes.

Office of Terrorism and Financial Intelligence (TFI): TFI is responsible for developing and implementing US government strategies to combat money laundering, terrorist financing, and other financial crimes. It also oversees FinCEN and OFAC, and coordinates with other government agencies and international partners to disrupt financial networks used by terrorists and other criminals.

Overall, the Treasury Department plays a critical role in the US government’s efforts to combat money laundering, terrorist financing, and other financial crimes. Its agencies work together to collect and analyze financial intelligence, enforce laws and regulations, and disrupt financial networks used by criminals and terrorists.

United States Federal Reserve (US Fed)

The US Federal Reserve is the central bank of the United States and plays an important role in regulating the US financial system. As part of its regulatory responsibilities, the Federal Reserve has a role in ensuring that financial institutions comply with anti-money laundering (AML) regulations and standards.

The Federal Reserve’s AML responsibilities include:

Supervision: The Federal Reserve is responsible for supervising and examining banks and other financial institutions to ensure that they comply with AML regulations and standards. The agency conducts regular examinations of these institutions’ AML policies, procedures, and controls.

Enforcement: The Federal Reserve has the authority to take enforcement action against financial institutions that violate AML regulations and standards. This can include fines, penalties, and other disciplinary actions.

Rulemaking: The Federal Reserve has the authority to establish AML rules and regulations for the banks and other financial institutions under its jurisdiction. These rules cover areas such as customer identification, customer due diligence, and suspicious activity reporting.

Coordination: The Federal Reserve works closely with other AML regulators, such as the Financial Crimes Enforcement Network (FinCEN) and the Office of the Comptroller of the Currency (OCC), to coordinate AML efforts and ensure consistency in regulatory standards.

In addition to these responsibilities, the Federal Reserve also participates in broader AML initiatives, such as international efforts to combat money laundering and terrorist financing. The agency works closely with other AML regulators and law enforcement agencies to share information and coordinate investigations.

United States Securities and Exchange Commission (SEC)

The U.S. Securities and Exchange Commission (SEC) is a federal agency responsible for regulating the securities industry, which includes broker-dealers, investment advisers, and other market participants. The SEC plays a critical role in ensuring that financial institutions comply with anti-money laundering (AML) regulations and standards.

The SEC’s AML responsibilities include:

Rulemaking: The SEC has the authority to establish rules and regulations related to AML compliance for securities firms under its jurisdiction. These rules cover areas such as customer identification, customer due diligence, and suspicious activity reporting.

Examination: The SEC conducts examinations of securities firms to ensure that they are in compliance with AML regulations and standards. The agency examines the firm’s policies, procedures, and controls related to AML compliance and may take enforcement action if it finds deficiencies.

Enforcement: The SEC has the authority to take enforcement action against securities firms that violate AML regulations and standards. This can include fines, penalties, and other disciplinary actions.

Coordination: The SEC works closely with other AML regulators, such as the Financial Crimes Enforcement Network (FinCEN) and the Financial Industry Regulatory Authority (FINRA), to coordinate AML efforts and ensure consistency in regulatory standards.

In addition to these responsibilities, the SEC also participates in broader AML initiatives, such as international efforts to combat money laundering and terrorist financing. The agency works closely with other AML regulators and law enforcement agencies to share information and coordinate investigations.

Overall, the SEC plays a critical role in ensuring that the securities industry remains free from the threat of money laundering and other financial crimes. By establishing and enforcing AML regulations and standards, the agency helps to maintain the integrity of the U.S. financial system and protect investors from harm.

The United States Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) is a private, non-profit organization that is responsible for regulating and overseeing the activities of broker-dealers operating in the United States. FINRA has a critical role in ensuring that these firms comply with anti-money laundering (AML) regulations and standards.

FINRA’s AML responsibilities include:

Rulemaking: FINRA develops and enforces AML rules and regulations for broker-dealers operating in the US. These rules cover areas such as customer identification, customer due diligence, and suspicious activity reporting.

Supervision: FINRA conducts regular AML examinations of broker-dealers to ensure that they are complying with AML regulations and standards. The agency assesses the adequacy of these firms’ AML programs and controls, and takes enforcement action against firms that violate AML rules.

Training and education: FINRA provides training and education to broker-dealers on AML compliance and best practices. This includes offering webinars, online courses, and in-person training sessions.

Coordination: FINRA works closely with other US regulators, including the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN), to coordinate AML initiatives and share information.

Risk assessment: FINRA conducts AML risk assessments to identify high-risk areas and emerging AML threats. The agency uses this information to develop guidance and best practices for broker-dealers.

Overall, FINRA plays a critical role in ensuring that broker-dealers operating in the US comply with AML regulations and standards.

UK Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) is the regulatory body responsible for overseeing financial markets in the United Kingdom. One of its key responsibilities is to ensure that financial firms comply with anti-money laundering (AML) regulations.

The FCA has a number of powers to enforce AML regulations, including the ability to conduct investigations, impose fines, and even revoke a firm’s authorization to operate in the UK if it fails to comply with AML regulations. The FCA also provides guidance and best practices to firms to help them comply with AML regulations.

Some of the key roles of the FCA in AML include:

Regulation and Supervision: The FCA is responsible for regulating and supervising financial firms in the UK to ensure they comply with AML regulations. It conducts regular assessments of firms’ AML policies and procedures, and provides guidance and feedback to help firms improve their AML controls.

Enforcement: The FCA has the power to take enforcement action against firms that fail to comply with AML regulations. This includes imposing fines, suspending or revoking a firm’s authorization to operate, and taking legal action against individuals involved in money laundering or terrorist financing.

Collaboration: The FCA works closely with other UK regulatory bodies and law enforcement agencies to identify and investigate potential AML risks and threats. It also collaborates with international regulatory bodies and law enforcement agencies to ensure a coordinated global response to AML threats.

Guidance and Best Practices: The FCA provides guidance and best practices to firms to help them comply with AML regulations. This includes providing guidance on customer due diligence, risk assessments, and suspicious activity reporting.

Overall, the FCA plays a critical role in ensuring that financial firms operating in the UK comply with AML regulations and that the UK financial system remains free from the threat of money laundering and terrorist financing.

European Commission

The European Commission is the executive body of the European Union (EU), responsible for proposing and implementing policies, enforcing EU law, and managing the EU’s budget. It plays a key role in the fight against money laundering and terrorist financing by developing and enforcing AML regulations that apply to all EU member states.

Some of the key roles of the European Commission in AML compliance and regulation include:

Developing AML Regulations: The European Commission is responsible for developing AML regulations that apply to all EU member states. These regulations set out requirements for customer due diligence, risk assessments, and suspicious activity reporting, among other things.

Enforcing AML Regulations: The European Commission monitors the implementation of AML regulations by EU member states and has the power to take legal action against member states that fail to comply with these regulations. It also has the power to issue fines and other penalties against financial institutions that fail to comply with AML regulations.

Promoting International Cooperation: The European Commission works closely with international organizations, such as the Financial Action Task Force (FATF), to promote international cooperation in the fight against money laundering and terrorist financing. It also promotes cooperation between EU member states by facilitating the exchange of information and best practices.

Supporting Financial Intelligence Units (FIUs): The European Commission provides support to FIUs in EU member states by facilitating the exchange of information and best practices. It also provides funding for training and capacity building programs for FIUs.

Overall, the European Commission plays a critical role in ensuring that AML regulations are implemented effectively across all EU member states and that the EU financial system remains free from the threat of money laundering and terrorist financing.

European Central Bank (ECB)

The European Central Bank (ECB) is the central bank of the eurozone, responsible for overseeing monetary policy and financial stability in the European Union (EU). As part of its mandate, the ECB also plays a role in regulating and supervising the banking sector in the EU, including ensuring compliance with anti-money laundering (AML) regulations and standards.

The ECB’s AML responsibilities include:

Supervision: The ECB is responsible for supervising significant banks in the eurozone, including conducting regular AML risk assessments and examinations to ensure that these banks comply with AML regulations and standards.

Rulemaking: The ECB has the authority to establish AML rules and regulations for significant banks in the eurozone. These rules cover areas such as customer identification, customer due diligence, and suspicious activity reporting.

Coordination: The ECB works closely with other AML regulators in the EU, such as the European Banking Authority (EBA), to coordinate AML efforts and ensure consistency in regulatory standards.

Oversight: The ECB oversees the AML work of national competent banking authorities (namely the Eurozone Central Banks) in the eurozone, providing guidance and support as needed.

In addition to these responsibilities, the ECB also participates in broader AML initiatives, such as international efforts to combat money laundering and terrorist financing. The ECB works closely with other AML regulators and law enforcement agencies to share information and coordinate investigations.

Overall, the ECB plays a critical role in ensuring that the banking sector in the eurozone remains free from the threat of money laundering and other financial crimes.

European Banking Authority (EBA)

The European Banking Authority (EBA) is an independent EU agency responsible for ensuring effective and consistent prudential regulation and supervision across the EU’s banking sector. As part of its mandate, the EBA also has a key role in setting and coordinating anti-money laundering (AML) and countering the financing of terrorism (CFT) policies across the EU.

The EBA’s AML/CFT responsibilities include:

Rulemaking: The EBA is responsible for developing AML/CFT technical standards and guidelines that apply to the EU’s banking sector. These standards cover areas such as customer due diligence, risk assessment, and suspicious transaction reporting.

Supervision: The EBA works with national competent authorities to ensure that banks operating in the EU comply with AML/CFT requirements. This includes conducting regular assessments of the effectiveness of national AML/CFT supervisory regimes.

Coordination: The EBA works closely with other EU institutions and international bodies to coordinate AML/CFT policy and initiatives. This includes working with the European Central Bank (ECB) and other EU regulatory bodies, as well as participating in international AML/CFT initiatives.

Training and support: The EBA provides training and support to national competent authorities and banks to help them implement AML/CFT requirements effectively.

Risk assessment: The EBA conducts AML/CFT risk assessments for the EU’s banking sector and provides guidance on best practices to mitigate these risks.

Overall, the EBA plays a critical role in ensuring that the EU’s banking sector remains free from the threat of money laundering and other financial crimes. By developing AML/CFT technical standards and guidelines, supervising and coordinating AML/CFT policy, and providing training and support to national competent authorities and banks, the EBA helps to maintain the integrity of the EU financial system and protect consumers from harm.

Swiss Financial Market Supervisory Authority (FINMA)

The Swiss Financial Market Supervisory Authority (FINMA) is the regulatory body responsible for overseeing financial institutions in Switzerland, including ensuring compliance with anti-money laundering (AML) regulations and standards. FINMA has a specific division dedicated to combating financial crime and AML, called the Anti-Money Laundering Division.

FINMA’s AML responsibilities include:

Supervision: FINMA supervises and examines banks, securities dealers, and other financial institutions to ensure that they comply with AML regulations and standards. The agency conducts regular AML risk assessments and examinations of these institutions’ AML policies, procedures, and controls.

Enforcement: FINMA has the authority to take enforcement action against financial institutions that violate AML regulations and standards. This can include fines, penalties, and other disciplinary actions.

Rulemaking: FINMA has the authority to establish AML rules and regulations for financial institutions in Switzerland. These rules cover areas such as customer identification, customer due diligence, and suspicious activity reporting.

Coordination: FINMA works closely with other AML regulators in Switzerland and internationally to coordinate AML efforts and ensure consistency in regulatory standards.

Licensing: FINMA also plays a role in licensing financial institutions, ensuring that only reputable and trustworthy entities are allowed to operate in the Swiss financial sector.

In addition to these responsibilities, FINMA also participates in broader AML initiatives, such as international efforts to combat money laundering and terrorist financing. The agency works closely with other AML regulators and law enforcement agencies to share information and coordinate investigations.

Egmont Group of Financial Intelligence Units

The Egmont Group of Financial Intelligence Units is a global organization that unites national financial intelligence units (FIUs) to promote the exchange of financial intelligence and coordinate the fight against money laundering, terrorist financing, and other financial crimes.

Established in 1995, the Egmont Group currently has 166 member FIUs from 157 countries. The organization provides a secure platform for its members to exchange information and intelligence related to financial crimes, and promotes the development of effective methods and techniques for combating money laundering and terrorist financing.

The Egmont Group plays a key role in the fight against terrorist financing. Its members work closely with law enforcement agencies and other national and international bodies to identify and disrupt the flow of funds to terrorist organizations. The group facilitates the exchange of financial intelligence on suspected terrorist financing activities, enabling its members to take timely action to prevent and combat such activities.

The Egmont Group does not issue reports or sanctions lists of institutions suspected or involved in terrorist financing. Instead, its focus is on facilitating the exchange of information and intelligence between its member FIUs. This information sharing helps to identify and disrupt the financial networks that support terrorist organizations, and enables law enforcement agencies to take targeted action against those involved in terrorist financing.

In addition to its role in combating terrorist financing, the Egmont Group also promotes international cooperation and coordination in the fight against other financial crimes such as money laundering, corruption, and fraud. Its members work together to develop and share best practices and guidelines for the prevention and detection of financial crimes, and to enhance their capabilities in investigating and prosecuting such crimes.