Title: Development of a Risk and EIDAS Regulation Based Approach for Money Laundering and Terrorism Financing

Year of Publication: Nov - 2019
Page Numbers: 14-28
Authors: Antonios Kallis, Emmanouil Serrelis
Conference Name: The Fifth International Conference on Information Security and Digital Forensics (ISDF2019)
- Greece

Abstract:


The responsibility of modern governments to provide an integrated and effective framework for Anti-Money Laundering (ML) and Counter Terrorism Financing (TF) to reduce risks, is increasingly being grown by the rapid increase of technology and the expected creation of new security gaps. In order to focus on transparency and accountability in business transactions, tax requirements and property issues as well as minimize the related risks, EU has developed a legal framework. This paper highlights the need for a Risk-Based Approach based on the ML/TF Risks faced by Qualified Trust or Company Service Providers (QTCSPs) to implement and enhance Customer Due Diligence procedures and policies. This is done by combining the latest recommendations (Public Consultation, March 2019) provided by the Financial Action Task Force (FATF) with the EU Electronic IDentification, Authentication and trust Services (eIDAS) Regulation on electronic/digital signatures for the electronic identification, the guidelines for a risk-based approach that combines QTCSPs and incorporates an AML Risk Assessment for QTCSP professionals, countries, competent authorities and their supervisory bodies.