Conflict between anti-money laundering legal provisions and fundamental rights

Abstract

The conflict between anti-money laundering law (the “AML”), as the objective of general interest, and the right to private and family life and data protection, as the fundamental rights, (the “conflict”) has intensified in the recent years. In WM Sovim case, the ECJ has invalidated requirement to disclose beneficial owners’ information to the general public that was intended as a contribution to AML objectives. The judgement provides also significant insight into the conflict in general. The aim of this paper is to suggest guidance on the achievement of balance between the AML legal provisions and the fundamental rights. In that regard, the paper distills the essence of the conflict, reviews the role of the beneficial owner in therein and analyzes the WM Sovim case. The paper concludes that regulations, rather than directives as the EU legal instruments, should introduce the AML provisions that interfere with the fundamental rights.