Introduction
The European Union Council and Parliament have reached a provisional agreement to enhance anti-money laundering measures for crypto asset service providers (CASPs). These new rules aim to combat fraud, organized crime, and terrorism financing by requiring CASPs to conduct due diligence on their customers and report suspicious activities.
Stricter Verification Requirements
Under the agreement, CASPs will now be obligated to verify the facts and information of users conducting transactions exceeding $1,090 or €1000. This move aligns CASPs with other obliged entities such as banks, real estate agencies, casinos, and asset management services.
Mitigating Risks
The Council of the EU emphasized that these due diligence measures aim to mitigate risks associated with transactions involving self-hosted wallets. By reporting suspicious activities and conducting thorough customer verification, CASPs can contribute to the integrity of the financial system.
Preventing Money Laundering
The Belgian Finance Minister, Vincent Van Peteghem, stated that these regulations are part of the EU's new anti-money laundering system. The goal is to prevent fraudsters, organized crime, and terrorists from legitimizing their proceeds through the financial system. The agreement strengthens the cooperation and organization of national systems against money laundering and terrorist financing.
Expanded Obligations
Under the provisional agreement, traders dealing with luxury cars, airplanes, yachts, cultural goods, and even professional football clubs will also become obliged entities. However, EU members can exclude the football sector if they perceive it to be a low-risk area.
Cash Payment Limits
The EU intends to make it harder for criminals to launder money by imposing a cash payment limit of nearly $11,000. This measure aims to restrict the value of cash payments and prevent illicit activities. Additionally, new cash payment thresholds for occasional crypto users will be introduced.
Financial Intelligence Units
The agreement also outlines the responsibilities of member states' financial intelligence units (FIU). Each unit will have immediate and direct access to financial, administrative, and law enforcement information. This includes data on crypto transfers, national motor vehicles, and customs.
Approval Process
Following the agreement between the Council and Parliament, the provisional agreement will now be presented to member states' representatives and the EU for approval. Once approved, these strengthened anti-money laundering rules will come into effect.
Conclusion
The European Union's latest anti-money laundering rules represent a significant step towards combating fraud, organized crime, and terrorism financing. By including crypto asset service providers in the list of obliged entities, the EU aims to ensure a more secure financial system. These measures underscore the EU's commitment to preventing money laundering and protecting the integrity of the financial sector.
Your Thoughts
What are your thoughts on the European Union's latest anti-money laundering rules? Share your views in the comments section below.
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By: Terence Zimwara
Title: The European Union Strengthens Anti-Money Laundering Rules for Crypto Asset Service Providers
Sourced From: news.bitcoin.com/eu-provisional-agreement-crypto-asset-service-providers-added-to-obliged-entities-list/
Published Date: Fri, 19 Jan 2024 06:30:20 +0000
