New EU Proposal on Money Laundering

The Anti-Money Laundering Authority (AMLA) is a new body for combating money laundering in European Union which will coordinate the national efforts of the EU countries in this area and take over the support of risky international financial transactions.

The AMLA will focus on addressing current shortcomings in AML/CFT supervision within the EU. It will act as the central body that oversees coordination between national authorities to ensure that anti-money laundering rules are applied consistently across all member states. The AMLA will also allow cooperation between national financial intelligence units and will facilitate joint analysis between them to effectively detect illegal cross-border financial flows.

The next step is to move the provisions from AMLD4 (Fourth Anti-Money Laundering Directive) to a Regulation that will directly apply in all EU Member States. The move is proposed in response to the European Commission’s concern that while AMLD4 is widely applicable, the directive is currently fragmented. 

The EU’s new anti-money laundering proposal will result in the entire cryptocurrency sector being subject to anti-money laundering regulations, requiring all service providers to conduct due diligence on their customers. In addition, anonymous cryptocurrency will be banned under the new rule. This proposal has been added to ensure full traceability of cryptocurrency transactions, allowing timely prevention and detection of money laundering and other common crimes involving digital currencies such as bitcoins. In addition, stringent standards for data collection in the crypto space have been proposed.

Also has been proposed a revision of the 2015 Cash Transfer Regulations. The proposed rule would set a € 10,000 limit on large cash payments across the EU. Moreover, the scope of this proposal has also been expanded to include cryptocurrency transactions in order to reduce the amount of money laundering in the block.

It is expected that after the Directive is transposed and the new AML structure is approved, the AMLA will become operational in 2024.

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