This document is an excerpt from the EUR-Lex website
Money laundering is the process by which criminals conceal the illegal origin of their property or income.
The EU is working to prevent the misuse of the financial system and to improve cooperation between EU Member States to fight against money laundering. Its measures are governed by the Treaty on the Functioning of the European Union (TFEU):
EU financial crime rules are mostly based on international standards adopted by the Financial Action Task Force.
In 2020, the European Commission adopted an EU action plan on preventing money laundering and terrorist financing, which includes measures it will take to better enforce, supervise and coordinate the relevant EU rules. At the same time, it published a method to identify high-risk non-EU countries with deficient anti-money laundering and countering terrorist financing regimes that pose significant threats to the EU’s financial system.