EU Targets Money Laundering At Foreign Subsidiaries

Law360, London (December 7, 2017, 5:35 PM GMT) -- The European Union's top financial regulators said Wednesday they are drafting new laws that will require firms to manage terrorist financing and money laundering risks at group-level, aiming to close loopholes open to subsidiaries in third countries.

Parent companies of banks, insurers and securities firms in the future will have to manage money laundering and terrorist financing risks of subsidiaries in third-party countries with lax compliance laws, the European supervisory authorities said in a statement late Wednesday.

Credit and financial institutions already have to put in...
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