The European banking watchdog is setting up a network of watchdogs to monitor banks whose business model leads to a high level of money-laundering risks, its chief supervisor Daniele Nouy said.
The move was spurred by a string of money-laundering scandals affecting banks in Europe, including the case of Pilatus bank in Malta.
The European Central Bank had been warned of a “mess” within Pilatus Bank, and moved in to withdraw the institution’s licence following a request by the Malta Financial Services Authority earlier in the year.
Pilatus bank had been at the centre of multiple scandals, following a series of leaked financial intelligence reports flagged evidence of money-laundering and serious compliance shortcomings in 2016.
Its chairman, Ali Sadr Hasheminejad was also arrested for alleged sanctions busting in the US.
The ECB has now decided to step up its supervision of banks, Ms Nuoy said. The anti-money laundering (AML) office will be set to collect and share information from supervisors and authorities, she added.
“The AML Office will set up and chair “an AML Network” among Joint Supervisory Teams in charge of the banks whose business model leads to a high level of money…
