EU Agreement on Anti-Money Laundering Laws
The EU Parliament and Council have recently reached an agreement on anti-money laundering and anti-terrorist financing laws. While the focus is not solely on cryptocurrencies, the provisions explicitly target the crypto industry.
Increased Reporting on Crypto Revenues
Crypto-related companies have been moving their activities to the EU due to its regulatory framework. The new laws expand this framework to prevent financial crimes within and outside of Europe.
A key provision requires crypto companies to conduct due diligence for digital asset transactions over 1,000 EUR. Similar rules apply to luxury goods traders, football clubs, and agents.
Individuals with high net worth will undergo enhanced due diligence procedures for cash transactions between 3k and 10k EUR. Stringent verification protocols will also be applied to transfers involving “high-risk third countries.”
Centralized Information Gathering at EU Level
Each EU country’s financial intelligence units will now have immediate access to all information related to the new measures. While local agencies will decide how to act on this information, they will submit relevant data to European authorities for better transnational prevention of financial crimes.
Hot Take: Strengthening Anti-Money Laundering Measures in the EU
The recent agreement between the EU Parliament and Council represents a significant step towards strengthening anti-money laundering and anti-terrorist financing efforts in the region. By targeting the crypto industry and implementing stricter regulations, the EU aims to prevent financial crimes more effectively.
These measures not only enhance due diligence procedures for crypto companies but also extend similar requirements to other sectors such as luxury goods trading and football. Additionally, by centralizing information gathering at the EU level, authorities can improve coordination and cooperation in combating transnational financial crimes.
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