Taxation of the Informal Economy in the EU

The European economy is worth $16.6 trillion, according to the International Monetary Fund, but we know that some of this wealth is undeclared. The European Parliament estimates that undeclared money accounts for 17% of the total, which represents a staggering $2.82 trillion.

This is a worrying figure and highlights the importance of anti money laundering checks such as due diligence and KYC (know your customer), which are essential tools for preventing money laundering and the financing of terrorism.

Anti money laundering checks are mandatory for businesses in many countries, but they also represent good business practice. Adopting robust procedures for verifying customers' identities and monitoring transactions helps protect the company from the negative consequences of unwittingly participating in illicite activities.

In a globally interconnected economy like the one we operate in, it is important to work together to ensure that dirty money cannot be laundered through our businesses and financial services. Due diligence and KYC are fundamental tools for preventing this type of activity and protecting our economy.