The Single Euro Payments Area (SEPA) is an initiative by the European Union to streamline euro-denominated payments across its member states, including several non-EU countries. SEPA allows individuals, businesses, and public institutions to make cross-border euro payments under the same basic conditions, rights, and obligations as domestic payments. The goal is to facilitate fast, secure, and cost-efficient transactions within Europe, promoting economic integration. 

From a financial crime compliance and anti-money laundering (AML) perspective, SEPA’s vast, integrated network presents both opportunities and challenges. While SEPA enhances the efficiency of cross-border payments, it also requires strict adherence to AML regulations to prevent illicit activities like money laundering or terrorist financing. Financial institutions must implement rigorous AML controls, such as transaction monitoring and customer due diligence, to ensure that the speed and ease of SEPA transactions are not exploited by criminals to move illegal funds across borders.