The establishment of AMLA, upgraded requirements and compliance challenges for foreign businesses within the EU

Compliance with EU standards in the field of AML/CFTA has become a strategic challenge for foreign companies operating in the European market.

The strict regulatory framework, combined with the creation of the European Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), has raised transparency and control requirements.

At the same time, businesses are required to manage interaction with high-risk jurisdictions, which intensifies the need to adapt internal processes.

Global alignment with European requirements is becoming not only a regulatory obligation, but also a lever for protecting a company's reputation and viability. Risk prevention and management strategies are now becoming the only way to go.

The recent 11th International Compliance Forum, presented by ECOMMBX, hosted a panel discussion on the compliance challenges faced by foreign businesses within the EU.

Kamil Alvi, Compliance Director, UK MLRO, Convera said companies were learning and sharing experiences globally, but any approach must also be adapted to local risks. He noted his company invested significantly in technology systems and communication to ensure alignment with global regulations.

Referring to banking relationships, he highlighted the challenges due to the lack of clear guidelines for non-bank institutions and the need for constant documentation and responsiveness to bank requests, such as questionnaires and information on geographical risks. It may be costly, but it is necessary, he said.

Peter Drake, Director, EMEA Head, Institutional Clients Group AML Compliance Risk Management, Citigroup UK commented that the risk-based approach is applied differently by each jurisdiction and that this is one of the biggest challenges.

At the same time, he said that some supervisory authorities are requesting actions without fully understanding the technical and operational difficulties of implementing them. He also pointed out the need for real-time monitoring of transactions as a critical element.

Marie Lundberg CAMS, CFE, CEO and Founder, Acronym Consulting AB, Sweden, among other things, emphasised that internal auditors offer significant added value and also act as consultants.

Speaking about the criminal organisation that recently shocked Sweden, she said that it is a gang with international operations and dangerous activities that include extortion, drug trafficking, violence and defrauding the elderly to steal their pensions.

Their members are minors, even 14 years old, and cannot be prosecuted. Economic crime is extremely profitable and is often organised from abroad, which makes it difficult for Swedish policing," Lundberg noted.

According to Marios Lazarou, Board Member, Head of Advisory, KPMG Limited, much will change with the creation of AMLA, which will holistically oversee obligations and will directly affect Cyprus.

AMLA, he added, will also have access to non-financial entities such as bar and accounting associations, while compliance obligations will be increased, with feedback and comments from the Authority. It is not just a matter of regulatory compliance, it is a new supervisory reality with a universal role, he predicted.

The discussion was moderated by Kostas Mavridis, Manager, C Compliance (Strategic Partner, Infocredit Group).

(Source: InBusinessNews)