What is money laundering
Money laundering and the financing of terrorism are a major concern for the EU economy and its financial system as well as the security of citizens.
On 20 July 2021 the European Commission presented a package of legislative proposals that aim to protect EU citizens and the EU's financial system against money laundering and the financing of terrorism.
On 30 May 2024 the Council adopted this package of legislation that will further strengthen and expand the EU’s rules on anti-money laundering and countering the financing of terrorism. The package also sets up a new European anti-money laundering authority (AMLA) giving it a coordination role as well as direct and indirect supervisory powers.
AMLA will be based in Frankfurt and will begin operations mid-2025.
What is money laundering
Money laundering is the process by which criminals conceal the illegal origin of their assets.
They use underground financial systems to process transactions and payments away from surveillance mechanisms.
Money laundering in numbers
Global estimates:
between €715 billion - €1.87 trillion of global GDP (2%-5%) is laundered each year
In the EU:
70% of criminal networks active in the EU employ some form of money laundering to fund their operations and conceal their assets
80% of the criminal networks active in the EU misuse legal business structures for their criminal activities
Between €117 - €210 billion: suspicious activities and transactions using the EU’s financial system and economy
How does money laundering work?
- Collection of dirty money
- Placement – illicit profits are placed in a legitimate financial system
- Layering – by movements or conversions, the funds’ origin is disguised (e.g. via false invoices, loans, transfers between accounts)
- Integration – profits re-enter the economy (e.g. through investments in real estate, luxury assets, business ventures)
Examples:
underground banking (networks that receive money to make it payable to third parties outside the regulatory oversight)
cash smuggling
money mules (individuals who have been recruited to transfer illicit funds between accounts)
misuse of legal business structures
money laundering through high-value products
misuse of cryptocurrencies (€1.5 billion: estimated cryptocurrency transactions on dark web marketplaces)
Source: European Commission, Eurojust, Europol, United Nations
Last review: 10 July 2026