Looming European Payment Initiatives Will Be Invitation to Launderers, Say Former Law Enforcement

By Brian Monroe

Payments rules designed to make it faster and cheaper to wire money between EU member states are also complicating the due diligence efforts of bank compliance officers, say analysts. The Single European Payments Area (SEPA), which went into affect January 28 with a hard compliance date of December 31, 2010, shortens the time available to process, and as a result, analyze wire transfers from three days to one day, giving banks in Europe less time for adequate due diligence on customers sending money throughout Europe and other countries. Part and parcel of SEPA is the Payment Services Directive (PSD), which...