New package of EU AML rules on the way

The European Parliament has adopted a package of new regulations aimed at strengthening the EU’s anti-money laundering and counter-terrorist financing (AML/CFT) tools.

The new regulations introduce a number of significant changes designed to tighten controls on money flows and improve the detection of criminal activity.

What are the key changes in the AML/CFT package?

1. Increased access to beneficial ownership information

Journalists, civil society organizations and others with a legitimate interest will have easier access to information on the beneficial owners of companies and other entities.

This information will be stored in central registries linked at EU level. They will contain data going back at least five years.

1. Strengthening the powers of Financial Intelligence Units (FIUs)

FIUs will have more powers to analyze transactions and detect suspicious activity. They will also be able to block suspicious transactions.

1. New cash payment limits

An EU cash payment limit of €10,000 will be introduced – with the option for Member States to tighten the limit. An exception will be made for payments between private individuals in a non-professional context.

1. Extending customer control

Cryptocurrency (CASP) merchants will be required to apply due diligence measures for transactions above €1,000. This also applies to sellers of luxury goods, such as jewelers and goldsmiths.

1. Creation of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA).

Based in Frankfurt, the new body will oversee the implementation of AML/CFT rules and coordinate the activities of supervisors across the EU.

When will the rules take effect?

The new rules are expected to enter into force after formal adoption by the EU Council and publication in the EU Official Journal. They are expected to significantly strengthen the fight against money laundering and terrorist financing in Europe.

What should companies do?

Companies operating in the sectors covered by the new AML/CFT regulations should familiarize themselves with the details and prepare for their implementation. The scope of the changes includes updating KYC procedures, strengthening transaction monitoring systems, and ensuring adequate training for employees.

As the Digital Operational Resilience Ordinance (DORA) and Cryptoassets Ordinance (MiCA) come into force, our firm offers comprehensive reviews and updates of documentation and internal processes, particularly in the payments, lending, and finance sectors.

Find out how we can help your company comply with the new regulations. Write to [email protected].