EU Parliament has passed new anti-money laundering legislation, introducing a €10,000 cash payment limit that applies to both commercial and private transactions, with exceptions for non-professional transactions. The legislation aims to combat money laundering, particularly focusing on high-value financial transactions within the realm of football clubs.
Over the next five years, professional football clubs in the EU will be required to verify the identity of their customers as part of the new legislative package. This move is viewed as a significant step towards enhancing transparency and security in the EU’s financial systems.
Among the key provisions of the legislation is the expansion of access to ownership information. This means that journalists, civil society organizations, and relevant authorities will have direct and free access to ownership information stored in EU member states’ databases.
The regulations also introduce enhanced due diligence measures for entities like banks, asset managers, and real estate agents. These entities will now be obligated to conduct customer identity checks and report any suspicious activities they encounter.
To further crack down on money laundering, the EU has imposed a cap on cash payments, limiting them to €10,000. However, there are certain exemptions for private transactions unrelated to professional activities.
Another significant aspect of the new regulations is the establishment of the Anti-Money Laundering and Terrorist Financing Authority (AMLA) in Frankfurt. AMLA will oversee compliance with anti-money laundering rules, especially for financial institutions, serving as a central authority for supervisory bodies within the EU.
Earlier this year, the European Banking Authority (EBA) extended its guidelines on money laundering and terrorist financing risk factors to crypto-asset service providers (CASPs), reflecting the EU’s commitment to combating illicit financial activities, particularly in the cryptocurrency space.
The EBA’s guidelines highlighted specific risks faced by CASPs, urging them to conduct thorough assessments of their customers and operational aspects to identify vulnerabilities.
In addition to extending guidelines to CASPs, the EBA has established comprehensive rules to regulate the stablecoin market, aiming to protect investors and enhance market stability by ensuring stablecoin-backed currencies maintain sufficient reserves.
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