EU Parliament Passes Anti-Money Laundering Legislation, Extends Oversight to Cryptocurrency

The European Parliament has endorsed a new set of laws aimed at tightening measures to combat money laundering and terrorist financing within the EU. This legislation, approved on Thursday, targets various sectors including large cash transactions, cryptocurrency firms, and football clubs.

Centralized Oversight and Enhanced Due Diligence

The approved package establishes a unified rulebook for all 27 EU member states and establishes an anti-money laundering authority in Frankfurt. This authority will supervise the implementation of the regulations, particularly focusing on entities considered to pose the highest risk.

Stricter Regulations for Crypto

Under the new laws, entities such as banks, asset managers, and crypto service providers are required to conduct enhanced due diligence and identity verification checks on their customers. They are also mandated to report any suspicious activities to Financial Intelligence Units and other relevant authorities.

Concerns Raised Over Cryptocurrency Regulations

Some observers within the EU crypto community have expressed concerns that the regulations imposed on digital assets may be disproportionately stringent compared to other financial sectors. These concerns were voiced when the political deal on the legislation was reached in January.

Transparency Measures and Access to Information

The legislation also aims to enhance transparency by providing immediate and free access to beneficial ownership information. This access extends to journalists, media professionals, civil society organizations, and other relevant authorities.

Legislative Process

Following a vote on the package's texts by a joint parliamentary committee in March, the plenary vote took place on Thursday. The package will now proceed to the EU Council, composed of lawmakers from member states, for formal adoption into law.

The adoption of the anti-money laundering package by the EU Parliament marks a significant step in enhancing financial transparency and combating illicit activities within the European Union. However, concerns persist regarding the potential impact of the regulations on the cryptocurrency industry, warranting ongoing scrutiny and dialogue among stakeholders.