Money laundering, a form of organized financial crime: A risk in banking business

Digital banking operations and the application of modern technologies provide certain opportunities for banks and clients, and favor economic operations. This innovation also brings negativity in society expressed through the emerging problem of money laundering, which is further reflected in the rule of law. Modern business conditions, but also the insufficiently effective European money laundering regulatory system in digital business, attract the interests of criminal organizations. Due to the threats arising from this interest and in the newly created conditions of the execution of the criminal offense, money laundering, as well as the lack of cross-border cooperation of national regulators who work in their jurisdictions with heterogeneous approaches and limited cooperation across borders, attention is paid to the reform of the European regulatory regime for the prevention of money laundering. The aim of this paper is to show the need and possibility for efficient and effective regulatory systems in the European area and risk reduction, as a response to financial crime manifested in the form of money laundering. This goal is confirmed by the need to harmonize the regulatory and supervisory approach to digital business and the necessity of canceling digital threats and risks. The ultimate goal is the suppression of financial crime and money laundering, and thus the protection of banking operations and the preservation of economic and social stability. The problem of combating money laundering is not only of a legal nature, but has pronounced economic repercussions and initiates the question of the stability of the financial system and banking operations.