Money Laundering and Predicate Offenses – the Chicken or the Egg?
Highlighting the advanced capabilities of FinScan, Innovative's sanctions and PEP screening solution.
The European Union’s (EU) 6th Money Laundering Directive came into effect for its member states on 3 December 2020, and must be transitioned into jurisdictional law by 3 June 2021. Part of the drive behind the directive is the harmonisation of various elements of member state legislation, such as the extension of criminal liability to include corporate entities, mandating a minimum sentence for money laundering, and the introduction of what the EU considers to be the 22 predicate offences to money laundering.
This acknowledges that money laundering cannot exist in its own right, and instead enjoys a symbiotic relationship with the original, underlying offence, without which money laundering would not be necessary nor occur. This sends a clear message to all MLROs and Compliance Officers: no longer are you managing your money laundering risk as prescribed and your predicate offence risk in line with your own risk appetite – now, you need to identify and control your exposures to these prescribed predicate offences too.
In this webinar, we discuss the concept of the predicate offence and the part it plays in the UK, the EU, and the US, and looking in further depth at some of the more challenging offences listed by the EU.
Topics discussed include:
- The meaning and importance of the predicate offence
- How the predicate offence interacts with money laundering
- Things to consider when risk mitigating the less obvious predicate offences
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