As outlined in a recent press release by the European Council, the provisional consensus between the Council and the Parliament is geared towards strengthening measures to protect both EU citizens and the financial system from money laundering and terrorist financing activities.
The new AML regulations apply broadly to “most of the crypto sector,” compelling all crypto asset service providers (CASPs) to carry out due diligence on their customers. This involves the verification of information about customers and the reporting of any suspicious activities. According to the agreement, CASPs are required to implement customer due diligence measures for transactions totaling €1000 or more. Additionally, the measures address risks associated with transactions involving self-hosted wallets.
The agreed-upon measures include heightened due diligence requirements specifically targeting crypto-asset service providers engaged in cross-border correspondent relationships. This focused approach aims to bolster oversight and enhance the security of international crypto transactions. The Council notes that credit and financial institutions will undertake enhanced due diligence measures for business relationships with high-net-worth individuals dealing with substantial assets.
The upcoming steps for the agreement involve finalizing the agreed-upon texts, which will then be presented to representatives in the EU’s Committee of Permanent Representatives and the European Parliament for their endorsement. Subsequently, the Council and Parliament will formally adopt the measures, leading to their publication in the EU’s Official Journal and eventual enforcement.
Belgian Minister of Finance Vincent Van Peteghem emphasized that this agreement is an integral part of the EU’s new anti-money laundering system. He expressed confidence that the initiative will enhance the organization and collaboration of national systems against money laundering and terrorist financing. Van Peteghem asserted that the strengthened measures will leave no room for fraudsters, organized crime, and terrorists to legitimize their proceeds through the financial system. In March 2023, members of the European Parliament (MEPs) from the Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees endorsed stricter AML measures targeting the financing of terrorism (CFT).
