EU heavyweight states push for joint supervisor against money laundering
The European Union’s largest states are pushing for the establishment of a new supervisory authority that would take over from states the oversight of money laundering at financial firms, after a series of scandals at the bloc’s banks.
In a joint statement, Germany, France, Italy, Spain, the Netherlands and Latvia said the 28-country EU needed a “central supervisor” to tackle the flow of dirty money within the bloc’s financial system.
The move comes after European lenders were shut down over money laundering in Latvia, Malta and Cyprus, while top banks from the Baltic and Northern Europe were involved in dodgy transactions worth billions of euros of Russian dirty money through the Estonian branch of Danske Bank, in what is seen as the worst money-laundering scandal on the continent.
The need for an EU supervisor emerged after repeated failures by national watchdogs at spotting and countering money laundering, the statement said.
The six countries said the new supervisor could be a new body or an existing watchdog, the European Banking Authority (EBA), which would need to be beefed up.