Fraud
Ensuring leasing and automotive rental industries are able to maintain their success in tackling money laundering and terrorist financing, and that the anti-money laundering framework recognises the relatively low risk of the leasing and automotive rental industries, are key priorities for our members.
How does AML impact leasing and automotive rental
The European Commission has proposed significant changes to the existing framework with their proposed Action Plan on Anti-Money Laundering which aims to harmonise AML rules and their interpretation throughout the EU. The European Banking Authority (EBA) will also be publishing Guidance on Money-Laundering and Terrorist Financing Risk Factors. Leaseurope continues to highlight the numerous factors that work to make the leasing and automotive rental industries inherently low risk from a money-laundering perspective. For instance, customers do not receive cash like with a traditional loan, but rather an asset to use. The methods of payment used for leased assets are also easily traceable in nature.
Additionally, Leaseurope advocates for the existing framework to be fully implemented before significant changes are made, in order to ensure that any changes are necessary and will have the desired effect of better equipping its members to tackle money-laundering and terrorist financing. To support the leasing and automotive industries in their role tackling money laundering, Leaseurope also engages with a range of stakeholders including the EU Platform on tackling vehicle crime and EReg (the Association of European Vehicle and Driver Registration Authorities) on how to ensure the assets owned and leased by our industry are protected from fraud and theft.
Key priorities
- Ensure the low risk nature of leasing, as recognised by the banking industry, supervisory authorities, and law enforcement officials, is taken into account in the upcoming new AML framework and EBA Guidelines
- Contribute to industry-wide discussions on how our members can continue to protect themselves against fraud and theft, including initiatives like improved data sharing between national crime prevention authorities, and engage with the European Commission on issues like odometer fraud
- Evaluate the impact of increased digitalisation on AML/CFT, and how AI can play a role in tackling fraud
Sharing best practices
Leaseurope has spent many years encouraged the sharing of knowledge and best practices within our sector.
In 2010, Leaseurope released an e-publication on Fighting Fraud. It contains a selection of interviews with national leasing associations and a number of articles by practitioners, aiming to raise awareness of what can successfully be done by the industry to fight fraud.