Syllabus
This is a graduate course that will end with an in-class test.
CONTENTS
The role of the FATF in organizing the fight against money laundering at the international level is quickly described. The course then focuses on EU law. The mechanism set up by directive 2005/60 is analyzed. It relies on professionals to monitor financial transactions and file suspicious activities reports when such transactions can be part of money laundering. In the wake of the new FATF recommendations, the Commission has issued a new directive proposal on February, 5th 2013.The reform process is then dealt with.
The directive establishes a risk-based approach under which professionals have to assess the level of risk of money laundering. It provides for three different levels of risk which require a low level of customer due diligence, enhanced customer due diligence and the case of PEPs (Politically Exposed Persons).
The course then deals with the fight against corruption. The shortcomings of the fight against corruption are explained. Its efficiency is hampered by the lack of coordination between OLAF (the European Commission’s anti-fraud office) and national prosecuting authorities. Once OLAF has transmitted its report to national authorities, it is entirely up to them to decide whether to prosecute or not. The compliance of OLAF’s investigations with procedural rights is also at stake.
Reform paths are then analyzed. The efficiency of the EU’s anti-corruption mechanism could be improved thanks to better coordination between member states and European bodies such as Eurojust, Europol and, of course, OLAF. National prosecuting authorities would have to inform OLAF of the follow-up of its reports. The role of OLAF’s supervisory committee could be enhanced. The creation of an EPPO (European Public Prosecutor’s Office) could be a major step forward allowing to effectively carry out EU-wide investigations and prosecutions.