Nikolas Sargeant
The recently provisionally agreed AML regulations extend to encompass "most of the crypto sector." These regulations mandate all crypto asset service providers (CASPs) to perform due diligence on their customers, including verifying customer information and reporting any suspicious activities.
New AML Measures Target Crypto Sector
As per the agreement, CASPs are required to apply customer due diligence measures for transactions totaling €1000 or more. The regulations also introduce measures to mitigate risks associated with transactions involving self-hosted wallets.
The agreed-upon measures include enhanced due diligence requirements specifically designed for crypto-asset service providers engaged in cross-border correspondent relationships. This targeted effort aims to strengthen oversight and enhance the security of international crypto transactions.
Credit and financial institutions are mandated to undertake enhanced due diligence measures when establishing business relationships with high net-worth individuals involving the handling of substantial assets, according to the Council.
Strengthening the EU's Fight Against Financial Crimes
The next steps in the agreement involve finalizing the agreed-upon texts, which will then be presented to representatives in the EU's Committee of Permanent Representatives and the European Parliament for approval.
Upon approval, the Council and Parliament will formally adopt the measures, which will be published in the EU's Official Journal and subsequently come into force.
Belgian Minister of Finance Vincent Van Peteghem emphasized, "This agreement is an integral part of the EU's new anti-money laundering system," stating that it will enhance the organization and collaboration of national systems against money laundering and terrorist financing.
Van Peteghem further noted, "This will ensure that fraudsters, organized crime, and terrorists have no space left for legitimizing their proceeds through the financial system." In March 2023, members of the European Parliament (MEPs) from the Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees had previously approved stricter AML measures targeting the financing of terrorism (CFT).
