The EU and Counterterrorism Financing: Right Diagnosis, Wrong Patient?

On 20 July 2021, the European Commission presented what it calls an ‘ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and counterterrorism financing (AML/CTF) rules’. In this briefing paper, Mara Wesseling examines the four legislative proposals with a focus on CTF, and asks if these proposals will enhance the EU’s effectiveness in this area. The paper argues that the measures might be the right response with regard to the failures identified after the various AML compliance-related scandals but seems to be a mismatch when it comes to improving CTF effectiveness and responding to the latest terrorism financing threats. The paper also seeks to make a new diagnosis on which a policy enhancing CTF effectiveness should be based. Finally, recommendations are made for improving CTF effectiveness.

Tune into our webinar with Mara Wesseling and Stephen Reimer