Europe is taking a proactive stance in the battle against money laundering / terrorist financing by introducing a new comprehensive Anti-Money Laundering (AML) package. This package comprises a series of legislative measures aimed at bolstering the region’s defenses against illicit financial activities. With a focus on enhancing cooperation, transparency and accountability Europe is committed to obstructing the efforts of criminals seeking to exploit its financial systems.
The European AML package focuses on key areas of improvements. Firstly, it introduces a harmonized rulebook, ensuring consistent AML obligations and standards for all Member States. This includes due diligence to customers, enhances transparency of beneficial owners and restrictions on anonymous instruments like crypto assets. It also addresses controversial golden passports and visas. This will streamline compliance efforts, reduce regulatory arbitrage, and promote a level playing field across the EU.
Secondly the package emphasizes the need for robust AML supervision. It establishes a new European Anti-Money Laundering Authority (AMLA) responsible for coordinating supervision and ensuring consistent enforcement across all Member States. AMLA will work closely with National financial intelligence units and law enforcement supervisors, fostering collaboration and effective information sharing. It will supervise specific high-risk financial entities and mediate disputes between national financial supervisors. It can impose significant sanctions for breaches of the law.
Additionally, the package introduces measures to strengthen the transparency of financial transactions. Limits are set on cash (7000 euro) and for crypto-asset transfers (1000 euro) where the customer cannot be identified to curb the illicit flows. Additionally, it aims to ban golden passports and impose controls on golden visas.
Furthermore, the package mandates digital accessibility to beneficial ownership registers, ensuring that information about the individuals behind corporate structures are up-to-date and historical information is readily available to authorities. This measure is critical in detecting money laundering schemes and freezing assets in time. The definition of beneficial ownership has been clarified to aid in identifying high-risk entities.
Concluding these reforms will significantly enhance the EUs framework for combating money laundering and terrorist financing emphasizing transparency oversight and international cooperation setting a new standard in the global fight against financial crimes.
Demetra Kalogerou
Financial Industry Expert
