The European Parliament adopted a package of laws regarding AML that strengthen transparency and FIU capacities. It also puts a cap of 10,000 euro on cash transactions.
The EP voted for laws that will update the anti money laundering (AML) and anti financing of terrorism legislation at the EU level. The new package of legislation helps both governments and the public maintain a more transparent environment, which will make these illicit activities harder to cover up. It also raises the difficulty for certain types of transactions.
Transparency
According to the EP, “people with a legitimate interest, including journalists, media professionals, civil society organisations,” and government institutions will have unfettered access to beneficiary owner data sitting in EU-interconnected national registries. This information should cover the most recent five years or more.
The governments’ Financial Intelligence Units(FIUs) gain powers when it comes to money laundering and terrorist financing detection. FIUs will also be able to put suspicious transactions on hold.
Wider due diligence net
Obliged entities – those companies and people who need to check client identity information and report odd activity to their country’s FIU – will have more to do. The definition of obliged entity also expands.
For one thing, football comes under increased scrutiny. Beginning in 2029, top-tier clubs “involved in high-value financial transactions with investors or sponsors, including advertisers and the transfer of players will also have to verify their customers’ identities, monitor transactions, and report any suspicious transaction to FIUs.”
Ultra-rich individuals, defined as having more than 50,000,000 in total wealth besides their main residence, come under greater oversight. Ultra-rich or not, cash payments will be limited to under 10,000 euro, except for transactions between private individuals not engaged in a transaction based on professional activity.
More bureaucrats!
The EP’s new package of laws also includes the creation of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). This body will be located in Frankfurt. AMLA will take on the most challenging cases, intervene when a financial institution fails, mediate between FIUs and others, and “supervise the implementation of targeted financial sanctions.”
Next steps
The package of laws passed by very wide majorities. However, that is not the last step, and the EC needs to vote on it as well. If that is completed, then the laws need to be published in the EU’s Official Journal for the bill to become law.
