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Guidelines clarify AML/CFT rules for EU funds transfers

The EU's banking and financial markets authorities have launched a public consultation on the abuse of funds transfers for the use of terrorist financing and money laundering.

The announcement comes from the Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) and the consultation will focus on draft guidelines on how payment service providers should detect and prevent terrorist financing and money laundering activity. This is part of the EU's programme on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).

The guidelines stipulate that payment service providers should:

  1. follow specific procedures to establish whether information on the payer or the payee is missing or incomplete; and
  2. follow a procedure to manage a funds transfer that lacks the required information.

Comments can be submitted for the consultation – using the EBA's website – until 5 June 2017.

The ESA statement said that “transfers of funds can be abused for terrorist financing and money laundering purposes. To prevent such abuse, and to detect it should it occur, payment service providers must be able to establish who sends and receives these funds. European legislation, therefore, requires that specific information on payers and payees is passed on along the payment chain and makes payment service providers responsible for ensuring that this is done.”


This item appears in the following sections:
Fraud Prevention
Anti-Money Laundering Fraud Prevention

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