EU AML Legislative Package Published

On Tuesday, 20 July the European Commission published a series of legislative proposals aimed at strengthening the EU’s anti-money laundering and countering the financing of terrorism rules (AML/CFT).

The package includes a new Regulation on AML/CFT as well as updates to the AML Directive. It also includes a revision of the 2015 Regulation on Transfers of Funds to trace transfers of crypto-assets and a Regulation establishing the creation of a new EU AML Authority (AMLA). The new AMLA will establish a single integrated supervision system across the EU; directly supervise some of the riskiest financial institutions; monitor and coordinate national supervisors; and support cooperation among national Financial Intelligence Units.

The Commission has called for the new Authority to be operational in 2024, though it will only begin direct supervision once the Directive has been transposed and the new regulatory framework starts to apply. The proposed rules on crypto-assets will extend the rules to the entire crypto sector, obliging all service providers to conduct due diligence on their customers.