Financial Crime Goes Global: How Europe Is Fighting Back
By Reseo Global
In the latest episode of “State of the Art,” Reseo’s podcast on innovation, regulation and trust in investment management, host Pierre-Yves Rahari sat down with Giles Swan, Public Policy and Regulatory Consultant, to explore how financial crime is evolving and how Europe is responding.
In this article, we look at how financial crime has become a truly global and technology-driven phenomenon, how the EU’s new Anti-Money Laundering Authority (AMLA) and AMLD6 directive aim to tackle it, and how technology is reshaping compliance and supervision across the investment industry.
The Globalisation of Financial Crime
Financial crime has long been part of the financial landscape, but its scale and sophistication have changed dramatically. According to the UN Office on Drugs and Crime, money laundering alone accounts for an estimated 2–5% of global GDP — between USD 2 trillion and 4.5 trillion annually.
“Those are huge numbers,” said Giles Swan. “They represent a significant issue not only for governments and regulators, but also commercially for firms that want to remain viable in a fast-evolving landscape.”
What’s new is the globalisation of financial crime. Enabled by technology, perpetrators now operate across jurisdictions, using digital networks to obscure ownership and move funds instantaneously. “We are not just dealing with local actors anymore,” Swan explained. “Technology has turned financial crime into an inherently cross-border challenge — involving both state and private actors with far greater sophistication than before.”
Europe’s Coordinated Response: AMLA and AMLD6
In response to this expanding threat, Europe is reshaping its anti-money-laundering (AML) and counter-terrorist-financing (CTF) framework. The creation of AMLA — the new European Anti-Money Laundering Authority, headquartered in Frankfurt — marks a major shift toward a coordinated, supranational model.
Historically, EU member states managed financial crime at the national level, resulting in divergent rules and supervision. AMLA’s mandate is to harmonise oversight and directly supervise certain high-risk, cross-border entities. “This is about joining up the dots,” said Swan. “The idea is to ensure that regulation keeps pace with the cross-border nature of financial crime, rather than being fragmented by national boundaries.”
Alongside AMLA, the sixth Anti-Money Laundering Directive (AMLD6) and accompanying AML Regulation aim to strengthen consistency across the EU. A key feature is the Ultimate Beneficial Ownership register, designed to improve transparency by requiring firms to identify and verify the individuals behind corporate structures — a move that will have deep implications for investment managers, fund administrators, and service providers.
“These rules demand greater use of technology,” Swan noted. “Manual processes that were once sufficient under earlier directives won’t be enough. Firms will need systems that can handle complex ownership structures efficiently.”
Collaboration, Technology, and Compliance in Practice
As regulations tighten, investment firms are re-evaluating their compliance frameworks. The focus is shifting from reactive reporting to proactive data analysis and technology-driven detection.
“The landscape is inherently technological now,” Swan said. “In the crypto-asset sector, for example, blockchain analytics tools like chain analysis are being used directly to track and prevent financial crime. That’s a model from which the traditional asset management industry can learn.”
He points to a convergence between RegTech (for firms) and SupTech (for regulators). Both sides are exploring how AI, distributed ledger technology, and real-time data can improve risk identification and reduce false positives. “There’s an exciting partnership potential here,” Swan added. “Regulators don’t need to reinvent the wheel — they can build on what the industry has already developed.”
The Road Ahead: A Smarter Regulatory Future
As enforcement becomes more coordinated, firms can expect more cross-border actions and deeper scrutiny of control frameworks. Yet the shift also presents an opportunity: greater regulatory convergence across the EU could reduce friction for compliant firms and enhance trust with clients and counterparties.
Swan emphasised that boards have a central role to play. “Every board should ask two questions,” he advised. “First, how are our financial crime policies being implemented in practice? Second, what is our weakest link? That’s where the greatest exposure lies — whether in a management company, fund structure, or service provider.”
Ultimately, fighting financial crime requires a balance of vigilance, collaboration, and technological innovation. “The good news,” Swan concluded, “is that regulators and industry are finally moving in the same direction.”
Click here to listen to the full podcast based on this article.
