A new bill has been submitted to the European Parliament, the aim of which is to curb money laundering and terrorist financing in the member states. If accepted, the proposal would enter into force within the framework of the AML/CFT directives.
Legislators did not specifically focus on cryptocurrencies, but instead scrutinized the issue of money laundering and anonymously held funds. THE Press release It is entitled “New EU measures once morest money laundering and terrorist financing”.
Clearer guidelines
There are currently several regulations in Hungary that strictly limit cash payments in order to curb money laundering. The best-known form of this is perhaps the cash payment limit, the essence of which is that a transaction can be completed in cash up to HUF 1.5 million. The question may arise: do cryptocurrencies, by their very nature, have an upper payment limit?
Among other things, the law would provide an answer to this if the parliament adopts it. The proposal sets an upper limit of EUR 7,000 for cash payments and EUR 1,000 for cryptocurrency payments in the event that the sending party does not authenticate itself.
According to the press release:
“Organizations such as banks, wealth and crypto-asset managers, real estate and virtual real estate agents, and high-level professional football clubs will be required to verify the identity of their customers, their property and whether [adott esetben] who controls the company. In addition, they will also have to determine the detailed types of money laundering and terrorist financing risks in their area of activity, and they will have to transmit the relevant information to a central register.”
The introduction of upper limits, in addition to clarifying the regulatory framework, limits the possibilities of various organizations and companies to accept large amounts of payments from unknown persons or users.
French legislator Damien Crême – who plays a leading role in the negotiations regarding the new AML regulations – said that they do not aim to ban crypto-payments at all. The EUR 1,000 limit applies only to anonymous wallets and unidentified persons for whom identification is not possible.
An anti-money laundering agency is launched
In June 2022, the European Parliament voted with 99 yeses and 6 abstentions to set up a new agency (Anti-Money Laundering Agency – AMLA) to oversee and investigate compliance with AML/CFT regulations.
AMLA will be tasked with monitoring risks and threats that might undermine the stability of the monetary system from within or outside the EU. In addition, they will be able to directly monitor credit and financial institutions and categorize them according to various risk levels. According to the announcements, their tasks will include mediation and dispute resolution between supervisory authorities operating in different jurisdictions.
Related post: EU members urge the creation of an organization that also controls cryptocurrencies
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