Financial Intelligence Units (FIUs) in the Anti-Money Laundering Regime under Reform: An Enquiry into the Privacy and Data Protection Challenges

Technological advancements of the last decade have increased the pressure on the current EU Anti-Money Laundering (AML) legal framework. After several isolated efforts through legislative intervention, the European Commission has decided to reform the current AML framework by adopting a package of four legislative proposals to strengthen the AML regime. At the heart of the reform lies the cooperation of FIUs, which have been established in each Member State to receive, analyse and transmit reports of suspicions identified and filed by the private sector. The newly adopted Directive (6th AML Directive) raises a plethora of legal questions regarding its compatibility regime with the rights to respect for private life and personal data protection. In particular, FIUs will be empowered with extensive access to information, raising concerns about whether these powers are necessary and proportionate without any exhaustive definition as to the categories of personal data to which FIUs can access. Following an overview, this article will shed light on these privacy and data protection challenges raised by the 6th AML Directive, focusing on the operation of FIUs.