A comparative analysis of the banking sector compliance in tracking of transactions with pursuit of preventing money laundering in the EU and US, analysing the 5th directive and the BSA (Bank Secrecy Act) of the US

Abstract

The objective of this thesis is to assess critically the development of anti-money laundering ("AML") and counter-terrorist financing ("CTF") legislation frameworks in the European Union ("EU") and the United States in reaction to significant money laundering instances in respective banking sectors. This research centers around three major components of AML/CTF systems: violations of regulations, the corresponding development of regulatory measures, and shifts in compliance and transaction monitoring approaches. Adopting a comprehensive comparative methodology, the author navigates the ripple effects of high-profile money laundering incidents on the subsequent regulatory countermeasures in the two jurisdictions.

The research analyses extensively into EU legal frameworks, as well as US-specific regulations like the Bank Secrecy Act and its later revisions. This thesis sheds insights on key money laundering cases such as the Danske Bank case in the EU and the HSBC case in the US by drawing a link between the history of legislative frameworks and the progression of AML/CTF systems. This investigation focuses on how these instances have affected the evolution of AML/CTF legislation, emphasizing the adaptability of such directives. Finally, the author illustrates that the ongoing growth of AML/CTF regulations is a matter of strategic importance in order to stay ahead of advanced ML and TF threats. This thesis thus contributes to the broader discussion on the need for ceaseless vigilance and adaptability in the face of these evolving threats.