The Council of the European Union has announced the adoption of the EU’s new Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime, which consists of an update of the EU’s Anti-Money Laundering Directive, a brand new Anti-Money Laundering Regulation, and the establishment of the European Anti-Money Laundering Authority (AMLA).
Under the new legislative package, the scope of AML/CFT rules will be extended to cover professional football clubs and agents, crowdfunding service providers and intermediaries, companies dealing in high-value goods such as precious metals and stones, watches, and luxury cars, as well as crypto asset operators.
In addition, the new AML/CFT rules tighten requirements and introduce new rules, including:
- A prohibition on cash payments above EUR 10,000.
- A ban on anonymous bank and crypto accounts.
- The broadening of the definition of Politically Exposed Persons (PEP).
- Stricter Know Your Customer (KYC) obligations, such as specified timeframes for updating and monitoring due diligence procedures.
- A revised definition of Beneficial Ownership, which allows member states to lower the identification threshold below the current 25%.