EU Parliament Adopts Anti-Money Laundering Rules Package, Also Policing Crypto

As an observer with a background in financial regulation and journalism, I am encouraged by the European Parliament’s approval of this comprehensive anti-money laundering (AML) legislation. The measures targeting various financial services and entities, including crypto, are essential for combating financial crimes and ensuring transparency within the EU.

As a dedicated researcher focusing on financial regulations within the European Union, I’m excited to share that the European Parliament has recently taken a significant step towards enhancing the current framework against money laundering and terrorist financing. By adopting a new legislative package, they aim to strengthen controls across the EU.

The EU, comprised of 27 nations, adopted a package on Thursday that includes creating a unified rulebook. Additionally, it established an anti-money laundering authority in Frankfurt to monitor the implementation of crucial frameworks, focusing particularly on entities identified as high-risk by the EU.

“Under the new regulations, institutions such as banks, crypto asset managers, real estate agents, and others are required to conduct thorough identity verifications and due diligence checks on their customers. Once these procedures are completed, they must report any suspected suspicious activities to the Financial Intelligence Units and other relevant authorities.”

Experts following cryptocurrency regulations in the EU expressed apprehensions that the proposed rules for digital assets could be excessively stringent relative to other financial industries upon the EU’s January political agreement.

The new measures aim to grant individuals and organizations with a legitimate reason, such as journalists, media professionals, civil society groups, and competent authorities, unobstructed, prompt, and unfettered access to beneficial ownership details stored in national registries and interconnected within the EU. Beneficial ownership information pertains to the identifying data of entities or individuals who own or exert control over corporations.

The parliamentary committee made its decision on the legislation’s text in March, prior to the planned plenary session on Thursday.

The EU Council, comprised of legislators from member countries, must formally approve the package for it to be enacted as law.