EU data protection in the fight against money laundering

Abstract

This dissertation analyses the intricate relationship and existing tensions between antimoney laundering legislation on the one hand and data protection legislation on the other. The research question underpinning this analysis is the following: To what extent is anti-money laundering legislation consistent with the European data protection regime? A review is first made of the EU’s data protection regime, placing a special emphasis on the right to data protection which is embodied in the Charter of Fundamental Rights of the European Union. The novelty of having such a right expressly affirmed is highlighted, whilst its non-absolute nature is also acknowledged. The study then moves to present an overview of the structure of the anti-money laundering legislative regime. Prominence is given to the fourth anti-money laundering directive, focusing on its most contentious data protection implications. The discussion also takes on board the proposed changes which at the time of writing are being debated within the EU institutions. An important theme that emerges from this analysis is that data protection legislation is not subordinate to the anti-money laundering regulatory regime. This regime admits of no special treatment in terms of data protection law. Various shortcomings that go against the principle of purpose limitation and the principle of proportionality are brought to the fore. It is inter alia submitted that within the remit of anti-money laundering legislation, certain provisions are said to be excessively widening the non-absolute nature of the right to data protection. It is thus contended than anti-money laundering legislation is not entirely consistent with the precepts dictated by the European data protection regime. The crux of the discussion ultimately entails the striking of a proper balance between two different interests, namely the fight against money laundering on the one hand and the protection of one’s personal data on the other. Despite being two different interests, they are not exclusive to each other and can still coexist. This study puts forward various recommendations that aim at strengthening the adherence to anti-money laundering law with the principles of proportionality and purpose limitation. The introduction of added procedural safeguards within the antimoney laundering regulatory framework is advocated.