© Unsplash/Arthur Mazi
The European Union wishes to go further in its measures to combat money laundering – and is preparing a text to better regulate, among other things, the crypto sector in Europe as well as cash transactions. Thanks to a provisional agreement between the Council and Parliament, we know some of the key measures of this new legislative package.
A crucial aspect of this new package is that a varied list of entities will now have to be held accountable in the fight against money laundering and the fight against the financing of terrorism. Financial institutions, banks, real estate agencies, asset management services, casinos, and even merchants will now be much more regulated. However, as we told you, the cryptocurrency sector is specifically targeted.
What the future anti-money laundering package contains
Crypto asset service providers will now be obliged to thoroughly investigate their customers and report any suspicious activity. In an effort to further strengthen oversight, the agreement states that transactions amounting to 1,000 euros or more will require reasonable verification measures from crypto platforms.
This includes ensuring the official identity of customers, as well as measures to mitigate the risks associated with transactions with locally hosted wallets. In addition, one or more “supervisors” will be appointed in each state. The latter will be responsible for monitoring all entities covered by the text and reporting any irregularities to the competent authorities. The latter will select companies using a risk-based approach.
Beyond that, the agreement also puts in place a maximum limit of 10,000 euros for cash payments across the EU, reducing the ease with which money can be transferred. dirty can be bleached. Member States will have the flexibility to impose a lower maximum limit if they wish. In addition, obliged entities will have to identify and verify the identity of a person carrying out an occasional cash transaction between 3,000 and 10,000 euros.
Beneficial ownership, which refers to the people who actually control or benefit from ownership of a legal entity (sometimes hidden behind complex financial arrangements and nominees), will be more harmonized and transparent. This involves formalizing a thorough ownership and control investigation procedure to identify all beneficial owners of a legal entity… including for offshore entities operating in the EU or purchasing real estate in the EU.
To complete this set of measures, the financial intelligence units (FUR) of each Member State will have immediate and direct access to financial, administrative and law enforcement information. The URFs will be responsible for receiving and analyzing relevant information to combat money laundering and terrorist financing.
Measures of this agreement must now be finalized before being presented to the representatives of the Member States and the European Parliament for approval. If approved, the Council and Parliament will be able to formally adopt the texts before their publication in the Official Journal of the EU and their entry into force.
- The EU has reached a provisional agreement on a new anti-money laundering package aimed at harmonizing rules and closing loopholes exploited by criminals.
- The new measures extend the list of obliged entities, including the crypto sector, and impose strict limits on cash payments.
- The new guidelines will strengthen transparency and supervision, with major implications for financial institutions and private companies.
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