Ethics and governance in the European Financial centers

AML regulation is based on soft law and not on hard law, so is the banking regulation. In other words professionals take care of the regulation by stating rules. But the rules that are defined by the negotiating parties (banks in a jurisdiction, jurisdictions at an international level) are not legally binding.
The success of soft law depends actually on the parties’ good faith.

But soft law should evolve into hard law for a party especially when this party weakens the credibility of the commitments by multiplying knowingly negligence, which is a serious threat for every negotiating party.