AML Rules Tighten

Adoption of new regulations across the European Union (EU) - Enhanced Rules on Cryptocurrencies

🔒 Let’s Stay Compliant!

What happened?

📅 On Thursday, 18/01/2024, the European Council and Parliament provisionally agreed on anti-money laundering (AML) rules specifically targeting cryptocurrencies.

We have identified many of these points as essential which are outlined below:

Customer Due Diligence (CDD) Measures:

✅ Exchanges and wallet providers must now apply CDD for transactions of €1000 or more.

✅ Verification and reporting of suspicious activities are now mandatory.

✅ Applies to transactions originating from conventional financial institutions as well as self-hosted crypto wallets.

Cash Payments:

✅ The EU-wide cash payment limit is now set at €10,000 to combat money laundering.

✅ Member states have the flexibility to impose a lower limit.

✅ Obliged entities must identify and verify individuals in occasional cash transactions between €3,000 and €10,000.

Enhanced Due Diligence for Cross-Border Transactions:

✅ Cross-border correspondent relationships that involve crypto-asset service providers (CASPs) will undergo heightened due diligence.

✅ Acknowledgment of the distinct risks linked with international transactions in the cryptocurrency space.

Financial Intelligence Units (FIUs):

✅ FIUs immediately obtain access to a wide array of data, encompassing tax information, funds, and cryptocurrency transfers.

✅ The FIU.net system has undergone an upgrade to facilitate quicker dissemination of reports.

✅ Close cooperation in cross-border cases.

AML Authority:

✅ Establishment of the AML Authority as a specialized supervisory body responsible for overseeing money laundering (ML) and terrorist financing (TF) safeguards in the EU Financial System.

Expanded List of Obliged Entities:

✅ The recent regulations encompass a significant portion of the cryptocurrency sector, requiring all Crypto-Asset Service Providers (CASPs) to perform due diligence on customers.

✅ Verification and reporting of suspicious activity are now mandatory.

Beneficial Ownership:

✅ Harmonized and transparent rules on beneficial ownership.

✅ Ownership and control elements are assessed to identify every beneficial owner.

✅ Threshold set at 25% ownership.

✅ Clarifications on multi-layered ownership and control structures.

High-Risk Third Countries:

✅ Enhanced due diligence for transactions involving high-risk third countries.

✅ Justification for additional countermeasures at the entity or member state level.

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