Research and Knowledge Repository of AI-2-TRACE-CRIME

Welcome to the AI-2-TRACE-CRIME Research and Knowledge Repository, an evolving resource dedicated to advancing understanding and solutions at the intersection of artificial intelligence, asset recovery, anti-money laundering (AML), and crime prevention. This repository serves as a centralized platform for open-access resources, offering valuable insights to researchers, practitioners, and the public on the role of AI in financial crime prevention, cybersecurity, and regulatory frameworks.

1. Research Publications: Our repository features original research and peer-reviewed articles produced by the Centre’s team and external collaborators.

• Research Handbook: Under development

2. Working Papers, Policy Briefs and Best Practices: Explore concise, actionable insights through our working papers, policy briefs and best practices series. These resources distill research findings into practical recommendations, addressing topics such as AML compliance, AI-driven asset tracing, and the regulatory implications of AI.

• The series is available here

3. Educational Resources: Designed for both newcomers and professionals, our open educational resources provide foundational knowledge on AI, AML, and cybersecurity, supporting ongoing learning and skill-building in the field.

• Under development  

4. Other Resources: Our repository also offers a collection of valuable open-access resources from a range of external sources. This includes links to relevant websites, EU legislative initiatives, and open-access working papers from other organizations focused on AI, financial crime, and security. These additional resources provide a broader perspective and support deeper engagement with current developments and best practices in the field. More specifically, our repository includes:

Key Policy Documents and Reports:

• European Commission, EU Strategy to tackle Organised Crime 2021-2025, COM(2021) 170 final
• European Commission, Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing,  OJ C 164, 13.5.2020, p. 21–33.
• European Commission, Asset recovery and confiscation: Ensuring that crime does not pay, COM(2020) 217 final
• European Commission, Towards better implementation of the EU’s anti-money laundering and countering the financing of terrorism framework, COM(2019) 360 final
• European Commission, Supranational risk assessment of the money laundering and terrorist financing risks affecting the Union, COM(2019) 370 final
• European Commission, Report assessing the framework for cooperation between Financial Intelligence Units, COM(2019) 371 final
• European Commission, Report on the interconnection of national centralised automated mechanisms, COM(2019) 372 final
• European Commission, Report on the assessment of recent alleged money laundering cases involving EU credit institutions, COM(2019) 372 final
• European Commission, Analysis of non-conviction based confiscation measures in the European Union, Commission Staff Working Document, SWD(2019) 1050 final
• European Commission, Comprehensive Assessment of EU Security Policy, Commission Staff Working Document, SWD(2017) 278 final
• European Commission, The European Agenda on Security, COM(2015) 185 final

Binding EU instruments as of November 2024

Following the adoption of Council Decision 2007/845/JHA, National Asset Recovery Offices (AROs) help in depriving criminals from their criminal profits. They identify assets that have been illegally acquired on their territories and facilitate the exchanges of relevant information at European level.

In 2024, the European Parliament and the Council adopted Directive 2024/1260 on asset recovery and confiscation, which sets minimum rules for the freezing, management and confiscation of criminal assets. Member States are obliged to transpose its provisions into national law by 23 November 2026.

Moreover, Regulation (EU) 2018/1805 on the mutual recognition of freezing and confiscation orders facilitates cross-border asset recovery and make the freezing and confiscation of criminal assets across the EU quicker and simpler. It applies to all freezing and confiscation orders issued within the framework of proceedings in criminal matters, thus including conviction and non-conviction based confiscation.

Finally, Directive 2019/1153 grants law enforcement authorities and Asset Recovery Offices with direct access to bank account information for the purposes of fighting serious crime and aims to improve the cooperation between law enforcement authorities and Financial Intelligence Units and facilitate the exchange of information between Financial Intelligence Units.

Past initiatives

• Council Framework Decision 2001/500/JHA of 26 June 2001 on money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds of crime
• Council Framework Decision 2005/212/JHA of 24 February 2005 on Confiscation of Crime-Related Proceeds, Instrumentalities and Property
• Council Framework Decision 2006/783/JHA of 6 October 2006 on the application of the principle of mutual recognition to confiscation orders

Europol documents and reports

• Europol, Malicious Uses and Abuses of Artificial Intelligence, 6 December 2021

• Europol, European Union Serious and Organised Crime Threat Assessment, 12 April 2021.
• Europol, European Union Terrorism Situation and Trend Report (TE-SAT) 2020, 23 June 2020
• Europol, Enterprising Criminals – Europe’s Fight against the Global Networks of Financial and Economic Crime, 5 June 2020

On the establishment of the new EU Anti-Money Laundering Authority

In July 2021, the European Commission tabled a proposal to establish a new EU authority to counter money laundering and the financing of terrorism (AMLA). This was part of a legislative package aimed at implementing the 2020 action plan for a comprehensive Union policy on preventing money laundering and the financing of terrorism. 

The AMLA, established in 2024, will be the Center of an integrated system composed of the authority itself and the national authorities with an AML/CFT supervisory mandate. It will also support EU financial intelligence units (FIUs) and establish a cooperation mechanism among them. 

• Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 establishing the Authority for Anti-Money Laundering
• Georgios Pavlidis, The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervision, Journal of Financial Crime, 2023 (open access)
• European Parliament, Anti-money-laundering authority (AMLA): Countering money laundering and the financing of terrorism, Briefing 15-05-2023.
• European Commission, Proposal to establish a new EU authority to counter money laundering and the financing of terrorism (AMLA), COM (2021) 421 final.
• European Commission, Impact Assessment accompanying the AML package, SWD (2021) 190 final.

On the deployment of Artificial Intelligence for AML and asset recovery

As part of its digital strategy, the EU wants to regulate artificial intelligence (AI) to ensure better conditions for the development and use of this innovative technology. AI can create many benefits, including in the areas of AML and asset recovery. In April 2021, the European Commission proposed the first EU regulatory framework for AI, which was adopted in 2024. According to the new Regulation, AI systems that can be used in different applications are classified according to the risk they pose to users. The different risk levels will mean more or less regulation.

• Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence
• Georgios Pavlidis, Deploying artificial intelligence for anti-money laundering and asset recovery: the dawn of a new era, Journal of Money Laundering Control, 2023 (open access)
• European Parliament, EU AI Act: first regulation on artificial intelligence, Briefing 08-06-2023
• European Commission, Proposal for a Regulation on AI, COM (2021) 206 final

On the adoption of the 6th Directive on AML/CFT and the new AML Regulation

Directive (EU) 2024/1640, known as the 6th AML Directive, replaces the existing Directive 2015/849/EU and contains provisions that will be transposed into national law, such as rules on national supervisors and financial intelligence units in Member States.

• Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing,
• Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
• European Parliament, New EU measures against money laundering and terrorist financing, Press Release,  28-03-2023
• European Commission, Proposal for a Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849, COM (2021) 423 final

On the new Directive on Asset Recovery and Confiscation

On 25 May 2022, the European Commission presented a proposal for a new Directive on Asset Recovery and Confiscation, building upon previous legislation, i.e. the 2014 Confiscation Directive. The new Directive was adopted in 2024, providing a new comprehensive set of rules that addresses asset recovery from beginning to end – from tracing and identification, through freezing and management, to confiscation and final disposal of assets.

• Directive (EU) 2024/1260 of the European Parliament and of the Council of 24 April 2024 on asset recovery and confiscation
• European Commission, Proposal for a Directive on asset recovery and confiscation, COM (2022) 245 final
• European Commission, Confiscation and asset recovery, Briefing 2022 (contains a summary of the key points of the proposal)
• European Commission, Study on freezing, confiscation and asset recovery – what works, what does not work, Final report, January 2021