Brussels, April 24, 2024 – The European Parliament has recently approved a set of regulations aimed at bolstering the European Union’s efforts to combat money laundering and the financing of terrorism.
Under the new regulations, individuals with a legitimate interest, such as journalists, media professionals, civil society organizations, competent authorities, and supervisory bodies, will be granted immediate and unrestricted access to beneficial ownership information stored in national registries, which will also be interconnected at the EU level. Furthermore, these registries will now maintain records dating back at least five years.
Additionally, Financial Intelligence Units (FIUs) will be empowered with greater authority to scrutinize and identify instances of money laundering and terrorist financing, including the ability to suspend suspicious transactions.
The legislation introduces enhanced due diligence measures for obliged entities, such as banks, asset managers, cryptocurrency firms, and real estate agents, who will be required to report any suspicious activities to FIUs and relevant authorities. Starting from 2029, professional football clubs engaging in significant financial transactions with investors or sponsors will also need to verify customer identities and report any dubious transactions to FIUs.
Other provisions of the new laws include heightened scrutiny of high-net-worth individuals, a EU-wide limit of EUR 10,000 on cash payments (excluding non-professional transactions between private individuals), and measures to prevent the circumvention of targeted financial sanctions.
To oversee the implementation of these measures, a new supervisory body called the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be established in Frankfurt. AMLA will be tasked with directly supervising high-risk financial entities, intervening in cases of regulatory failures, serving as a central coordinating body for supervisors, and mediating disputes between them. Additionally, AMLA will oversee the enforcement of targeted financial sanctions.
The Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package comprises three main components: the sixth Anti-Money Laundering (AML) directive, the EU “single rulebook” regulation, and the Anti-Money Laundering Authority (AMLA) regulation.
Before the regulations can take effect, they must be formally adopted by the Council and published in the EU’s Official Journal.
This legislative initiative by the Parliament reflects the desire of citizens, as expressed in the conclusions of the Conference on the Future of Europe, particularly with regards to preventing tax evasion and enhancing cooperation on corporate taxation.
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