Saudi Press

Saudi Arabia and the world
Tuesday, Nov 11, 2025

How to Combat Money Laundering in Europe

How to Combat Money Laundering in Europe

Good luck finding a major bank in Europe that hasn’t breached money laundering regulations.

In Denmark, the two largest banks, Danske Bank and Nordea, are both currently subject to criminal investigations. BNP Paribas received the highest-ever fine in 2014, when it settled with U.S. authorities and had to pay $9 billion for sanctions violations. Many others — from HSBC and Standard Chartered in the U.K. to Deutsche Bank and UBS and Credit Suisse — have had to answer for offenses.

These cases show that living up to money laundering regulations is difficult, but not doing so is one of the biggest risks to a bank’s reputation. Banks and authorities share the same goal — to stop the bad guys — but both are struggling to find a way forward. While the European Union has proposed establishing a dedicated authority on the crime, company expenses to combat laundering are ballooning.

Research we conducted at the Danish Financial Supervisory Authority suggests a less expensive solution: Improve the technology for monitoring and reporting suspicious bank activity. Doing so could significantly cut down on money laundering, though it would also raise questions about privacy that would need to be addressed.

Banks are generally required to do three things to combat laundering: Know their customers and their expected patterns of transactions; monitor transactions and examine those that seem atypical; and report suspect behavior to the government.

These steps may sound simple, but the quantity and complexity of transactions make them anything but. In a small country like Denmark, the central payments systems process the equivalent of 80 billion euros ($97 billion) a day. Such monitoring can also be a hassle for customers, who have little patience when trying to execute simple transactions.

This is where investment in tech can be useful, especially if it improves cooperation between regulators and banks. I see six ways for authorities to help banks better identify and investigate high-risk activity while sparing most ordinary customers inconvenience.

Create (or enhance) national electronic IDs to verify customer identity. This data could ease the onboarding of most customers, as banks would no longer need copies of passports and other documents to set up accounts. Reducing costs and hassle for the many would free up resources for monitoring transactions of higher-risk customers.

Build digital data registers to verify business identity. Registers should be able to provide high-quality information (e.g. certified by lawyers) that banks can use in onboarding uncomplicated businesses. This would make it easier for companies too, since they can then maintain most of their data in one place. Again, this would free up bank resources to focus on higher-risk accounts.

Encourage banks to build shared Know Your Customers utilities. The banking sector would greatly benefit from a centralized database of customer information that can also be linked to public registers. There is no economic sense in banks gathering the same information separately, which is the current practice. Establishing such utilities may require supervisory guidance, however.

Allow banks to share data on risk flags. Money launderers often use multiple banks, making it difficult for any one company to identify problematic transactions. Being able to share data will give everyone a fuller picture of a customer’s banking activity. That would prevent those who get barred from one bank for suspicious activity from simply moving to another lender.

Make it easier to screen for politically exposed people. Governments generally have information on individuals — and close relations — who’ve been entrusted with a prominent public function and are therefore at greater risk of corruption. Right now most authorities don’t share this data with banks, making it hard to identify potentially risky accounts. (For example, it’d be easy for a bank to identify me as a politically exposed person, but given my common name, it’d be harder to identify my children living at another address.) Making this information available for bank queries would vastly improve their screening process.

Give banks access to other select data. Public authorities hold all kinds of information that could be useful for lenders trying to prevent laundering. For instance, governments have a better view of businesses that have the same owners or are connected in other ways. Sharing this data would give banks a better perspective on a particular business’s activities. Another option is for police to share what they know about how criminals behave to help banks identify dubious transactions.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
Saudi Crown Prince to Visit Washington While Israel Recognition Remains Off-Table
Saudi Arabia Poised to Channel Billions into Syria’s Reconstruction as U.S. Sanctions Linger
Smotrich’s ‘Camels’ Remark Tests Saudi–Israel Normalisation Efforts
Saudi Arabia and Qatar Gain Structural Edge in Asian World Cup Qualification
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Fincantieri and Saudi Arabia Agree to Build Advanced Maritime Ecosystem in Kingdom
Saudi Arabia’s HUMAIN Accelerates AI Ambitions Through Major Partnerships and Infrastructure Push
IOC and Saudi Arabia End Ambitious 12-Year Esports Games Partnership
CSL Seqirus Signs Saudi Arabia Pact to Provide Cell-Based Flu Vaccines and Build Local Production
Qualcomm and Saudi Arabia’s HUMAIN Team Up to Deploy 200 MW AI Infrastructure
Saudi Arabia’s Economy Expands Five Percent in Third Quarter Amid Oil Output Surge
China’s Vice President Han Zheng Meets Saudi Crown Prince as Trade Concerns Loom
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
×