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The European Union is preparing to set up an anti-money laundering agency to coordinate the national supervisory authorities. According to a media report based on EU documents, the bloc also plans to impose new rules to increase the transparency of cryptocurrency transfers.
Europe steps up anti-money laundering efforts at Union level
In response to calls for the application of anti-money laundering (AML) rules across Europe, the European Commission is likely to propose the creation of a new Anti-Money Laundering Authority ( AMLA). According to documents seen by Reuters, the agency should become the “centerpiece” of an integrated surveillance system also made up of national authorities.
In the absence of a pan-European anti-money laundering body, the executive power in Brussels has so far mainly relied on national regulatory agencies to enforce its AML rules. Cooperation has not always been satisfactory when it comes to stopping dirty money, the report notes. This is why the authors of the documents insist:
Money laundering, terrorist financing and organized crime remain important issues that should be addressed at Union level.
The new authority is expected to help prevent money laundering and terrorist financing cases in the European Union “by supervising and taking decisions directly towards some of the riskiest cross-border financial sector entities”.
The agency will coordinate national supervisory authorities to enforce common European regulations more effectively. Brussels also wants to make EU AML rules directly binding on member states to prevent criminals from exploiting differences in national regulatory regimes.
EU to adopt stricter reporting requirements for crypto service providers
Another proposal of the cited documents is to adopt new European requirements for service providers working with crypto assets. These platforms will be obliged to collect and make accessible data concerning the initiators and beneficiaries of cryptocurrency transfers. The scope of EU rules for financial services does not currently cover such transactions and EU officials warn:
The absence of such rules exposes crypto-asset holders to the risks of money laundering and terrorist financing, as illicit money flows can be done through crypto-asset transfers.
According to Sven Giegold, member of the European Parliament from the German Green Party, the European Commission has prepared a strong package against money laundering. “With uniform standards and more centralized supervision, the European Commission is introducing important improvements to enable coherent action against financial crime”, underlined Giegold.
The MEP added that the EU should in the meantime take legal action against EU members who do not correctly apply its AML rules. Final approval from the EP and EU states will be needed for the new regulations to enter into force.
What do you think of the proposals contained in the EU documents cited in the report? Let us know in the comments section below.
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