Breaking: EU Parliament Passes AML Regulation

The European Parliament has passed a new rule to combat the violation of Anti-money Laundering (AML) regulations and incidents of terrorist financing.

EU Sets U Agency to Monitor AML Regulation

To oversee and supervise the implementation of the new rule, a new agency called the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has been designated. The office of the AMLA will be situated in Frankfurt. The law is yet to be published in the EU Office Journal as it has not been formally adopted by the Council.

According to the EU Parliament, the authorities will provide immediate, unfiltered, direct, and free beneficial ownership information held in national registries and interconnected at the EU level, to individuals and organizations with legal interest. Those who fall into this category are journalists, media professionals, civil society organizations, competent authorities, and supervisory bodies.

Meanwhile, these registries plan to update their database to include information from as far back as five years. It is worth noting that some media houses had previously reported that the EU adopted an effective ban on crypto transactions conducted through non-custodial wallets that had not been verified about a month ago.

The move was said to be largely connected to the new AML package that had been recently approved by members of the EU Parliament at the time. The news caused an outcry amongst crypto enthusiasts who feared the effect that the ban would have in the market.

However, the latest statement from the EU offers a more concise explanation of the matter.

Crypto Exchanges Have Obligation To FIU

The new AML law empowers Financial Intelligence Units (FIUs) to perform analysis and detect money laundering or terrorist financing activities. They also have authorization under the law, to suspend any suspicious transaction.

As part of the AML rule, thorough due diligence and rigorous checks must be conducted to verify the customer’s identity. During this process, suspicious activities detected by “obliged” entities like banks, crypto asset managers, and others, must be reported to the FIUs or any authorized body. The jurisdiction of the new rule is still limited to certain sects of customers.

For instance, top-tier football clubs that usually engage in high-value financial transactions with investors or sponsors will likely remain unaffected by the new AML rule until 2029. Even transactions involving advertisers and the transfer of players would be required to verify their customers, monitor their transactions, and report any suspicious transactions to the FIUs.