The European Parliament has implemented a new regulation aimed at preventing money laundering and terrorist financing.
EU Sets U Agency to Monitor AML Regulation
A new agency named the Authority for Anti-Money Laundering and Countering Financing of Terrorism (AMLA) has been established to oversee and supervise the implementation of a new rule. The AMLA’s headquarters will be based in Frankfurt. However, the law has not been officially published in the EU Office Journal as it has not yet been adopted by the Council.
The EU Parliament mandates that regulatory bodies make available, in real-time and without restriction, beneficial ownership information from national databases, which are interconnected at the EU level. This data will be accessible to individuals and organizations with a legitimate reason to request it, including journalists, media outlets, civil society groups, competent authorities, and oversight bodies.
In the meantime, these registries intend to revise their databases to incorporate details dating back five years. It’s important to mention that certain news outlets announced approximately a month ago that the EU implemented a ban on cryptocurrency transactions using unverified non-custodial wallets.
At the time, the EU Parliament had just approved a new Anti-Money Laundering (AML) package, which was widely believed to be the driving force behind the controversial move. This development sparked concern among crypto supporters, who worried about potential market repercussions from the proposed ban.
However, the latest statement from the EU offers a more concise explanation of the matter.
Crypto Exchanges Have Obligation To FIU
Under the new Anti-Money Laundering (AML) legislation, Financial Intelligence Units (FIUs) are granted the ability to examine transactions for signs of money laundering or terrorist funding. Additionally, they are permitted by law to halt any suspected transactions.
To comply with the AML regulation, it’s essential to carefully verify a customer’s identity through extensive background checks. If during this procedure, any suspicious transactions are detected by institutions such as banks and crypto asset managers, they are required to report these activities to Financial Intelligence Units (FIUs) or other designated authorities. The scope of this rule currently applies only to specific groups of customers.
Wealthy football clubs, which often conduct significant financial dealings with investors and sponsors, are expected to be exempt from the new anti-money laundering rule until 2029. However, starting in 2029, such transactions with advertisers and player transfers will need to be subjected to customer verification, transaction monitoring, and reporting of any suspicious activities to Financial Intelligence Units.
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2024-04-25 01:44