On 5 September the head of the European banking authority josé Manuel Campa stated that the project of the digital currency Libra cannot be regulated because it falls into the “white spot” in the existing legislation.
According to Campe, you need to watch for such digital currencies as Libra. He noted that his Supervisory authority has issued warnings in respect of scriptaction before it became known about the launch of Libra (formerly the regulator said about the risk of money laundering through crypto-currencies).
Kampa are not alone in their concerns. Just recently, a member of the Board of Directors of the European Central Bank (ECB) Yves Mersch in harsh terms commented on digital currency giant of social networks. He warned against its centralized nature and the “perfidious promises”.
Explaining how financial assets, which fall under the EU laws on investment and electronic means of payment can be settled in practice, Kampa said members of the European Parliament Committee for Economics: “There is a huge “white spot” in which covers the vast majority of these assets”. And Libra, he added, expects the same fate.
For Europe, which is rocked by a series of Bank scandals, including the episode with the largest Bank in Denmark, Danske Bank, carried out through its Estonian branch of a suspicious transaction of $230 billion, it is obvious that measures to counter money laundering have been ineffective.
Another major European Bank, Deutsche Bank, which, ironically, was called bitcoin “gun criminals” in 2018 is in the field of law enforcement because of the connection with defendants in so-called “Panama records”. 6 Sep Reuters, referring to the documents of the investigation of the U.S. Congress, said that the system of monitoring financial transactions to detect possible money laundering at Deutsche Bank have not worked in relation to a number of Russian oligarchs. Employees of Deutsche Bank in the United States and other countries warned about suspicious transactions involving customers from Russia, however, prevent the user ignored, say sources to Reuters.
However, despite the growing number of such incidents among the 28 countries of the EU there is no consensus on whether to establish a Central Agency that will engage in the fight against money laundering. In the end, the law enforcement functions of this kind are forced to comply with national Supervisory authorities, the approaches and methods which differ from country to country. This state of Affairs, the head of the European banking authority, has led to the fact that EBO has become a “paper tiger”, by the office with a minimum of resources and power that engages in activity that gives guidance to national regulators.
Campa admitted that the staff of the Paris headquarters of the Department consist of three members, and in the next three years, EBO plans to hire eight more people.
“Our resources are extremely limited,” stated Kampa.