In a noteworthy development, the European Parliament has ratified a series of laws aimed at bolstering the EU’s anti-money laundering (AML) and counter-terrorism financing efforts, bringing about significant changes for the cryptocurrency sector.
The new regulations entail stringent due diligence protocols and identity verification checks for customers. Entities such as banks and cryptocurrency asset managers are mandated to promptly report any suspicious activities to Financial Intelligence Units (FIUs) or relevant authorities, marking a heightened level of scrutiny on the cryptocurrency landscape.
Under the legislation, FIUs are empowered with broader authority to scrutinize and uncover instances of money laundering and terrorist financing, with provisions for suspending transactions deemed suspicious.
To oversee these regulations, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be established in Frankfurt. AMLA’s responsibilities include supervising high-risk financial entities, intervening in cases of oversight lapses, acting as a central coordination hub for supervisors, and mediating disputes among them. Additionally, AMLA will oversee the enforcement of targeted financial sanctions.
Comprising the sixth AML directive, the EU “single rulebook” regulation, and AMLA regulation, this legislative package aims to ensure greater transparency and accountability. It grants individuals with a “legitimate interest,” such as journalists and civil organizations, unrestricted access to beneficial ownership information stored in national registries across the EU.
Furthermore, the laws introduce heightened vigilance measures for ultra-high net worth individuals and impose an EU-wide cash payment limit of EUR 10,000, except in non-professional transactions between private individuals. Additionally, measures are in place to prevent the circumvention of financial sanctions.
Even top-tier football clubs are not exempt, as they will be required to verify customer identities, monitor transactions, and report any suspicious activities to FIUs, especially for high-value transactions, starting in 2029.
Commenting on these developments, Ilya Brovin, Chief Growth Officer at Sumsub, expressed approval, stating, “The EU’s latest AMLR regulations are a welcome response to the advantages that technology is gifting criminals. It takes us a step closer to the safe and transparent crypto industry we all want, which is to be celebrated.