An intelligence-sharing platform created more than two decades ago to help authorities across the European Union (EU) to combat financial crime across borders has been upgraded this week, infused with what the European Commission describes as the ‘latest state‑of‑the‑art technology’.
The ‘next‑generation’ FIU.net went live on 3 February, providing Financial Intelligence Units (FIUs) across the bloc and Netherlands-headquartered law-enforcement agency Europol with a ‘significantly improved, state‑of‑the‑art IT solution enabling a quicker, more efficient exchange and cross‑matching of information’, the European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG Fisma) said.
FIU.net became operational in 2002 as an initiative involving several EU member state FIUs. Hosted by the European Commission since 2021, it is now used by the FIUs of all 27 member states, as well as Norway’s FIU and Europol, to exchange and cross‑match information. The Commission began working on improvements two years ago.
‘The exchange of information is vital when it comes to successfully preventing and fighting serious crimes, such as money laundering, drug trafficking, corruption, human trafficking, child sexual exploitation and terrorist financing,’ DG Fisma states. ‘Criminals and terrorists are adaptable and quick to use new technologies to abuse the financial system, launder their illicitly obtained assets and finance their malicious activities.’
‘It is therefore important to ensure that competent authorities, such as the national FIUs, which are at the frontline in the fight against financial crime, have the necessary tools to be up to the challenge. These tools should allow FIUs to exchange crucial information swiftly and securely, analyse suspicious financial flows effectively and, ultimately, provide the investigative and prosecutorial authorities with useful financial intelligence,’ the announcement continues.
Swifter and more secure
The FIU.net system has functionalities including a ‘case file functionality’ enabling FIUs to exchange information on subjects and transactions; ‘cross‑border reporting’ giving FIUs the possibility to rapidly distribute suspicious transaction reports filed by ‘obliged entities’ (for example, financial institutions) to counterpart FIUs; and so-called ‘ma³tch’ functionality allowing FIUs to perform ‘hit/no‑hit searches against datasets shared by other FIUs in a pseudonymous manner and establish, in real time, whether a subject is already known by another country, without the unnecessary exposure of data.’
The ‘next‑generation’ FIU.net has been developed through collaboration between the Commission and FIUs, represented by an FIU.net advisory group.
‘The new system is therefore based on business requirements set by FIUs and touching upon all features and functionalities of the FIU.net application’, the Commission states, listing improvements in ‘performance and stability’, ‘flexibility and ‘operability’ and ‘security’.
The announcement explains that ‘the use of the latest technology ensures an improved and swifter management, processing and transfer of information, including large datasets as well as a more stable environment’; ‘enhances the flexibility and agility of the FIU.net application and improves its interoperability with FIUs’ systems’; and states that the implementation of ‘more modern and secure connection methods guarantees a higher degree of IT security’.
In addition, two further FIUs – those of Liechtenstein and Iceland – will be connected to FIU.net. The network will consequently grow to 30 FIUs, as well as Europol.
Europol has estimated the value of suspicious transactions in Europe to be equivalent to about 1.3 per cent of EU GDP, while worldwide the figure is estimated to be close to three per cent of global GDP, according to a European Court of Auditors study published in 2021.
RELATED ARTICLE EU sets out anti-money laundering plans – a news story (20 July 2021) on European Commission legislative proposals to significantly strengthen the EU’s approach to anti-money laundering/combating the financing of terrorism (AML/CFT)
AMLA to take charge of FIU.net
FIU.net’s upgrade comes as the new EU Anti-Money Laundering Authority (AMLA) comes into being in the German city of Frankfurt. Money laundering is the practice of legitimising the proceeds of crime by filtering them into the regular economy to mask their illegal origin.
AMLA was created through a legislative package aimed at strengthening the EU’s AML/CFT rules that was presented by the European Commission in 2021 – three decades after the bloc’s first AML directive. This was approved by the European Parliament in April 2024 and adopted by the Council in May 2024.
The new EU AML/CFT regime tasks AMLA, which has had legal existence since June 2024, with the ‘management, maintenance and development of the FIU.net system to ensure that it evolves and continues to address FIUs’ needs and provides them with the functionalities they need to carry out their tasks in an effective manner’. Subject to a decision by AMLA, the FIUs of further non‑EU countries may be connected to FIU.net.
The Commission will transfer the ‘next‑generation’ FIU.net system to AMLA by 10 July 2027.
The authority is expected to have a staff of about 80 people by the end of 2025, hitting about 430 by the end of 2027. Bruna Szego was last month officially appointed as AMLA’s first chair. She currently leads the Bank of Italy’s AML supervision and regulation unit.
AMLA: the European Commission has described the authority as a ‘game-changer’ (above is an embedded tweet from 2021)
EBA highlights ‘divergent approaches’
In December 2024 the European Banking Authority (EBA) published its findings from a fourth (and final) round of reviews of competent authorities’ approaches to tackling money laundering and terrorist financing (ML/TF) risks in the banking sector.
AML/CFT supervisors have ‘taken important steps to implement a risk-based approach’ to AML/CFT, the Paris-headquartered authority stated, saying that since the first round of reviews in 2018, it had observed ‘significant developments’ in competent authorities’ approaches to supervision.
‘Nonetheless, the EBA continued to find weaknesses in competent authorities’ risk assessment methodologies and enforcement processes not being fully effective or deterrent,’ it stated. ‘Additionally, the EBA found divergent approaches in the way prudential supervisors consider and address ML/TF risks.’
However, it went on to state that ‘overall, while the EBA continued to identify issues and shortcoming in this last round of reviews, the progress made since the first round suggests that the effectiveness of AML/CFT supervision will facilitate the effective implementation of the new AML/CFT package’.
An EBA review in 2022 found that ‘cooperation with FIUs was not always systematic and continued to be largely ineffective in most [EU] member states’ that were assessed.
The Georgian Parliament did not consider the president’s substantiated remarks presented during the veto procedure on the offshore law and thus overrode the veto. In her remarks, Georgian president Salome
His pledge could simplify the tax obligations for US citizens who live overseas. Americans, regardless of where they live in the world, have to file tax information with the Internal Revenue Service
The European Union is embarking on an ambitious journey to become the first climate-neutral continent by 2050, with a significant milestone set for 2040. The EU Climate Law mandates a reduction of net
The head of the Internal Revenue Service (IRS) has recently shed light on a staggering financial oversight, revealing that the nation’s wealthiest individuals are bypassing over $150 billion in