EU Approves Stricter Rules to Combat Money Laundering

The European Council and the European Parliament have reached preliminary agreement on a portion of a package of measures aimed at protecting citizens and the financial system of the European Union from money laundering and terrorist financing. This was announced by the press service of the European Council.

According to the new package, all anti-money laundering rules currently applicable to the private sector will be transferred to a new regulation, while the directive will address the organization of Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) institutional systems at the national level in EU member states.

It is noted that the new rules will cover a larger portion of the cryptocurrency sector, requiring all Crypto Asset Service Providers (CASP) to conduct proper customer verification. This means they will need to verify facts and information about their clients and report suspicious activities.

According to the agreement, CASPs must apply customer verification measures for transactions exceeding €1000. The agreement also includes measures to reduce risks associated with transactions using private wallets.

Other sectors subject to customer verification and reporting obligations include the trade of luxury items such as precious metals, gemstones, jewelers, watchmakers, and goldsmiths. Dealers in luxury cars, planes, yachts, and cultural valuables (e.g., works of art) will also be subject to checks.

"This agreement is an integral part of the new anti-money laundering system in the EU. It will improve the organization and cooperation of national systems against money laundering and terrorist financing. This ensures that fraudsters, organized crime, and terrorists will have no space to legitimize their income through the financial system," said Vincent Van Petegem, the Minister of Finance of Belgium, who currently presides over the EU Council.

This preliminary agreement on the regulation to combat money laundering is the first to fully harmonize rules across the EU territory, closing potential loopholes used by criminals to launder illegal income or finance terrorist activities through the financial systems of EU countries.

The European Council emphasizes that the agreement will contribute to the improvement of the organization of national systems to combat money laundering.