Last month, the EU Funds Transfer Regulation 2015 (FTR 2015) – which aims to ensure the full traceability of payments – came into effect. Helping to prevent and detect illicit financial transactions, FTR 2015 implements the updated international anti-money laundering (AML) and counter-terrorist financing (CTF) recommendations by the Financial Action Task Force (FATF) and, therefore, represents a powerful tool to catch unlawful payments.
While this regulatory addition has been welcome, the broader requirements for payment service providers (PSPs) have introduced grey areas. Deutsche Bank’s Christian Westerhaus, Head of Product & Strategy, Institutional Cash Management, writing for Money Laundering Bulletin, examines how the industry can resolve these areas of contention.
When discussing the next steps, Westerhaus writes: “What’s needed is for the banking community to begin an open dialogue to achieve a common understanding of FTR 2015’s expanding scope and requirements. Only then can the industry be assured that the regulatory ambiguities – which could disrupt global payment flows – will be resolved.”
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