The EU Council and Parliament Reach Agreement on Stricter AML Rules for Crypto Firms
The European Council and Parliament have reached a provisional agreement on an anti-money laundering (AML) package that will impose stricter due diligence requirements on crypto firms. The new rules will apply to most of the crypto sector, requiring crypto-asset service providers (CASPs) to conduct due diligence on customers conducting transactions of €1,000 or more. The regulations also include measures to mitigate risks associated with transactions involving self-hosted wallets. CASPs will need to enhance their due diligence on cross-border correspondent relationships as well.
EU-Wide Cash Payment Limit and Identification Requirements
In addition, the agreement establishes an EU-wide maximum limit of €10,000 for cash payments, making it harder for criminals to launder money. Businesses will also be required to identify and verify the identity of individuals involved in occasional cash transactions ranging from €3,000 to €10,000.
Approval Process and Impact
The deal is now subject to finalization and approval by the European Parliament. If approved, the texts will be formally adopted before being published in the EU’s Official Journal and taking effect. These stricter AML rules are part of the EU’s sixth Anti-Money Laundering directive and its single rulebook regulation. The aim is to close loopholes that facilitate money laundering while ensuring quick and effective data processing in the digital age.
Hot Take: EU Strengthens AML Regulations for Crypto Firms
The EU Council and Parliament have agreed on tighter anti-money laundering rules for crypto firms. Under the new regulations, crypto-asset service providers will be required to conduct due diligence on customers involved in transactions of €1,000 or more. Additional measures will address risks associated with self-hosted wallets and cross-border correspondent relationships. The agreement also introduces a maximum cash payment limit of €10,000 and identification requirements for transactions ranging from €3,000 to €10,000. The deal is pending approval from the European Parliament and aims to close loopholes and enhance data processing in the digital age.
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