Information Accompanying Transfers of Funds (Regulation)

The Regulation is to ensure complete traceability of transfers of funds in order to facilitate the "prevention, detection and investigation" of money laundering and terrorist financing. The Commission wants the Regulation to implement the recommendations of the Financial Action Transaction Force (FATF) of 2012. The FATF is an international body which develops measures to combat money laundering and terrorist financing.


In its Policy Brief, cep finds that combating money laundering and terrorist financing at EU level is necessary because the flow of payments is becoming increasingly transnational in nature. The compulsory transmission of information on the payee of a transfer of funds facilitates the traceability of transfers of funds. By individually assessing and weighting risks, the payment service provider can explicitly steer resources to areas with a high risk of money laundering.

The Regulation cannot be based on the internal market competence (Art. 114 TFEU), because it is expressly aimed at the "prevention, detection and investigation of money laundering and terrorist financing". The only remaining possibility is the flexibility clause (Art. 352 TFEU) which requires unanimity in the Council.