The political process behind the 2024 EU anti-money laundering package

Abstract

Throughout the years technology has made the transfers of funds more efficient but also more complex. One of the risks involved in this respect is the threat of money laundering which is the placement, layering and integration of funds emanating from proceeds of crime masquerading as legitimate sources of income. The European Union (EU), on the other hand was founded upon the notion of promoting peace, security and social justice within Europe and beyond. It is therefore clear, that money laundering endangers these prospects because it is often considered as strongly related to the financing of terrorism whilst promoting the destruction of the social fabric of the EU throughthe predicate offences following which the crime of money laundering occurs. In this sense, the 2024 Anti-Money Laundering (AML) Package of the EU is considered as a breakthrough moment in the fight against financial crime throughout the Union, not least because it harmonises the approach to tackling this crime at an EU-wide level. This brings about the debate relating to the balance between the sovereignty of the member states and supranationalism, which in turn occurs within the bureacratic structures of the institutions of the EU. This thesis focuses on two of these institutions, the European Commission, which is the only institution that has the right to initiate legislation under the Ordinary Legislative Procedure (OLP), and the European Parliament. In particular to the latter institution, this thesis analyses the way in which the European Parliament shaped the original EU Commission proposals. The thesis also focuses on how different political groupings tend to react to legislative packages such as the highly consequential 2024 AML Package, and how their stance on the future of European integration is, or is not, likely to shape their way of thinking in this regard.