“A credible framework for preventing and fighting money laundering and terrorist financing is essential to maintain the integrity of the European financial system and reduce risks to financial stability.”

“The banking sector sees itself as being in the forefront of the fight against financial crime. It understands that to be effective this fight cannot remain solely in the hands of the public authorities or solely in the hands of the industry.”

“I will stand for fair taxes – whether for brick and mortar industries or digital businesses.”

Taxation and anti-money laundering (AML) compliance activities are pivotal in the role that banks play in society

Banks as gatekeepers

Through their mission as gatekeepers of the financial system, banks control the access of individuals and corporates to financial and payment services.

  • AML competent authorities extensively rely on banks in their fight against financial crime through a series of due diligence, transactions monitoring and reporting requirements. In addition, banks perform financial sanctions screening,
  • Through ad hoc due diligence and reporting requirements, banks ensure the tax transparency of customers hence supporting tax authorities in their fight against tax evasion. In their capacity as custodians and intermediaries in cross-border portfolio investments, banks also help investors obtain withholding tax relief or refund to which they are entitled to

While complying with these requirements, banks manage their client base and protect themselves against the potential risks which may be associated with their clients’ status, home country and activities.

Banks as taxpayers

Banks are themselves taxpayers and largely contribute to public finance, mainly through the corporate income tax and the input VAT

Impact on banks’ profitability

Compliance activities are not profit-generating activities for banks. However, compliance costs and taxes have a major impact on the profit and loss account.

Tackling financial crime

Financial sanctions regimes

Tax transparency and reporting of customers

Withholding tax relief and refund

Corporate taxation in the digital age

VAT on financial services

Our team

Roger Kaiser

Roger Kaiser

Senior Policy Adviser - Tax & Compliance
Mireille Thiery

Mireille Thiery

Assistant - Prudential Policy & Supervision