EU Provisional Agreement Imposes Stringent AML Regulations on Crypto Sector
In Brief
EU reached a provisional agreement on aspects of the AMLR to counter money laundering.
European Parliament and Council, comprising finance ministers from the bloc’s 27 member states, have reached a provisional agreement on aspects of the Anti-Money Laundering Regulation (AMLR), a comprehensive regulatory package designed to counter money laundering.
Among the approved measures is the requirement for cryptocurrency firms to implement “customer due diligence measures” for transactions exceeding equivalent to $1,090. Additionally, the deal introduces measures aimed at reducing risks associated with transactions involving self-hosted wallets.
Futhermore, regulators have established specific checks for providers of cryptocurrency asset services in cases involving transactions across various countries. This mandates a thorough monitoring of the business connections of affluent individuals by cryptocurrency asset service providers.
The provisional agreement additionally grants special powers to Financial Intelligence Units (FIUs), enabling them to swiftly and efficiently acquire crucial financial and administrative details. This includes information related to taxes, funds, frozen assets associated with financial penalties, and transfers involving cryptocurrencies.
The new agreement is specifically focused on the European Union’s sixth money-laundering directive and the rulebook within the framework of the AMLR. The AMLR represents a comprehensive initiative aimed at addressing sanctions evasion and money laundering, incorporating the establishment of a unified rulebook and the creation of a supervisory authority with oversight over the cryptocurrency sector.
Throughout the last year, the European Union concluded the implementation of specific Anti-Money Laundering (AML) checks on cryptocurrency fund transfers, aligning with the Markets in Crypto Assets (MiCA) regulation. In December, there was an agreement between the European Parliament and Council to establish the AML supervisory authority.
European Union Strengthens Anti-Money Laundering Measures
The financial regulator of the European Union has been refining its regulations to address money laundering concerns, encompassing measures applicable to the realm of cryptocurrencies.
Recently, the European Banking Authority, responsible for overseeing banks in the European Union, revised regulations pertaining to the prevention of money laundering, extending their applicability to cryptocurrency companies. Consequently, cryptocurrency firms in the European Union must now assess the likelihood of their involvement in financial crimes by closely examining their customers, offered products, delivery methods, and geographical locations.
The recent development in the AMLR package reflects the European Union’s intentions to strengthen measures against money laundering and promote transparency in the cryptocurrency sector.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
