FCC RegUpdate

Members of the European Parliament (MEPs) on March 28, 2023 (Tuesday) voted and adopted their position on three pieces of upcoming draft legislation to combat money laundering and terrorist financing.

The AML/CFT package consists of:
– The EU Single Rulebook on AML/CFT – regulation on the prevention of the use of the financial system for money laundering or terrorist financing which includes,
– Setting limits up to EUR 7,000 for cash payments and EUR 1,000 for crypto-asset transfers
– Customer and beneficial owners’ due diligence by banks, assets, and crypto assets managers
– Provisions on ban of golden passports and visas
– The 6th Anti-Money Laundering Directive proposed information on beneficial ownership held in national central registers to be available digitally to people with a legitimate interest, such as journalists, and civil society.
– Establishment of the European Anti-Money Laundering Authority (AMLA) with supervisory and investigative powers to ensure compliance with AML/CFT requirements.

The adopted anti money laundering package will also have the following provisions:

1. Verification of the identity of customers/ owners by:
o  Banks and FIs
o  Assets and crypto assets managers
o  Real and virtual estate agents
o  High-level professional football clubs

2. Financial Intelligence Units
o  Each member state should establish an FIU
o  Cooperation among FIUs, AMLA, Europol, Eurojust, and the European Public Prosecutor’s office

3. Beneficial Ownership
o  Owning over 15% of share or voting rights or other direct/ indirect ownership interest
o  Owning over 5% of share in extractive industry or a company exposed to higher AML/CFT risks

4. Digital national central registers of beneficial owners
The European Parliament will be ready to negotiate on the AML/CFT package after a confirmation during a plenary session in April.