Milestones in the Foundation and Role of the Most Significant International Organizations against Money Laundering in the European Union

Abstract

In this two-piece study, the author introduces the most important international organizations and institutions fighting against money laundering of our time, through the main chapters of the formation of the international institutional system. The first part is focused on the creation of the international institutional system fighting against money laundering.By the 21st century the phenomenon of money laundering—with the need of the laundering of gradually increasing “dirty” money, mainly from drugs, weapons and human trafficking, prostitution and corruption—has become a worldwide problem. With the increasing organization of international criminal groups—taking advantage of the free movement of money and financial services—are using more and more refined techniques to get more profits with their illegal activities. Money laundering will not leave terrorism untouched—casting a shadow on our everyday life—as particular radical groups use every means necessary to lay their hands on money sources anonymously needed for their existence, as it supplies their destructive actions; and naturally procuring this money the best sources are the money laundered by criminals. Recognising the money laundering and the negative and destructive effects of new crimes on everyday economic, financial and political life based on laundering, the leading countries of the world started international legislation against money laundering and terrorism which laws and codes are strictly regulating the different financial and bank supervision of the nation states. Despite the onsetting difficulties and indecisiveness, it was clear for the European Union that only strong international collaboration—and the unified understanding of measures—is the only power to stop the spread of money laundering.