12th EBS LAW CONGRESS
Money laundering – a growing threat to the economy and society
Money laundering is one of the greatest challenges facing modern legal systems and societies. Illegal financial flows not only endanger the integrity of markets but also promote organized crime and the financing of corruption. With increasing digitalization and global interconnectedness, money laundering methods are evolving and exploiting loopholes in national and international regulations.
The tension in combating money laundering: security vs. freedom
The legal fight against money laundering faces a dilemma: On the one hand, it requires effective control mechanisms that intervene deeply in financial transactions, while on the other, it must protect fundamental rights such as data protection and economic freedom. The legal challenges are more diverse than ever before: Companies and banks are required to strengthen their internal compliance systems to avoid becoming hubs for illegal activities themselves. Compliance with due diligence obligations and the implementation of preventive measures are therefore essential.
Not only represent a business challenge, but also raise fundamental legal questions, particularly regarding the responsibility and liability of the actors.
International reforms as the key to effective anti-money laundering
In parallel, the continuous reform of existing laws and international agreements is of key importance. The legal framework must be adapted to technological innovations such as blockchain technology or automated financial systems are adapted without hindering economic progress.
Supranational organizations such as the EU or the FATF (Financial Action Task Force) face the challenge of ensuring harmonized and enforceable regulation at the global level. Answering these questions is essential to finding a balance between effective oversight, economic freedom, and the rule of law. One thing is clear: Only coordinated reforms and clear responsibilities can successfully manage the complex interplay of prevention, investigation, and law enforcement in the long term.
