Money Laundering: An Analysis of the Regulatory Landscape, Banking Sector Challenges, and Cryptocurrency Risks

Abstract

This thesis explores the potential impact of harmonizing Anti-Money Laundering (AML) regulations on enhancing financial integrity within both traditional and cryptocurrency sectors. It begins with an examination of the historical development and adoption of AML regulations globally, highlighting the importance of AML in combating financial crime. Key regulatory bodies, including those in the European context (EBA, ECB, EU) and globally (FATF, Basel Committee), are introduced to provide context.

The analysis proceeds to assess the costs of money laundering, encompassing both direct and indirect impacts, and examines notable case studies to underscore the consequences of inadequate AML measures. Challenges and limitations within current AML regulations are discussed.

Further exploration focuses on AML compliance within the cryptocurrency environment, considering the unique challenges posed by digital assets. The Market in Crypto-Assets (MiCA) framework is examined as a potential solution to regulate crypto-assets, with particular attention to its AML and Counter Financing of Terrorism provisions. Case studies on crypto laundering provide insights into prevalent challenges and mitigation strategies.

The thesis concludes with an analysis of the importance of AML regulation harmonization, comparing regulatory variations between Europe and the global landscape. It considers ongoing regulatory initiatives, international collaboration efforts, and future perspectives on AML regulation.