From the Fight Against Money Laundering and Financing of Terrorism Towards the Fight for Fundamental Rights: Role of Data Protection

36 Pages Posted: 20 Jan 2023 Last revised: 27 Jul 2023

See all articles by Magdalena Brewczyńska

Magdalena Brewczyńska

Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT)

Eleni Kosta

Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT); Tilburg Law School

Date Written: January 18, 2023

Abstract

The exchange of information is a key element of the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) system. The legal framework governing AML and CFT provides an outline of relevant information flows, but it does not regulate them in detail. In the European Union, this is a task of the data protection law, which in contrast to the AML/CFT regulatory regime, explicitly formulates necessary requirements for the exchanges of personal data. These requirements serve as safeguards designed with a view of protecting individuals against the power of those who process personal data. In view of this, the aim of this chapter is to provide an outline of the most common instances in the European AML/CFT framework that require sharing of personal data and to shed light on the interpretation of some core EU data protection rules in light of the objectives of the European AML/CFT framework. The analysis focuses primarily on three matters: first, on the recognition of financial information as personal data; second, on the difficulty in reconciling some of the crucial principles that underlie the data protection legal regime with the goals set out in the AML/CFT legal framework; and third on the grounds for lawful processing of personal data in the AML/CFT context.

Keywords: Data protection, Anti-Money Laundering and Counter Terrorism Financing (AML/CFT), data sharing, notification, access rights

Suggested Citation

Brewczyńska, Magdalena and Kosta, Eleni, From the Fight Against Money Laundering and Financing of Terrorism Towards the Fight for Fundamental Rights: Role of Data Protection (January 18, 2023). Tilburg Law School Research Paper nr. 2/2023, Available at SSRN: https://ssrn.com/abstract=4328464

Magdalena Brewczyńska (Contact Author)

Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT) ( email )

P.O.Box 90153
Prof. Cobbenhagenlaan 221
Tilburg, 5037
Netherlands

Eleni Kosta

Tilburg University - Tilburg Institute for Law, Technology, and Society (TILT) ( email )

P.O.Box 90153
Prof. Cobbenhagenlaan 221
Tilburg, 5037
Netherlands

Tilburg Law School

Tilburg, 5000 LE
Netherlands

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