New rules enter into force in the European Union (EU), which imply that cash payments of more than 10.000 euros will be prohibited in the future. This is a measure agreed upon by the European Parliament and member states in order to combat money laundering.
The Provisional Agreement on Anti-Money Laundering Regulation will, for the first time, exhaustively harmonize rules across the EU, closing possible loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.
Obligated entities such as financial institutions, banks, real estate agencies, asset management services, casinos, and merchants – play a central role as gatekeepers in the anti-money laundering and countering the financing of terrorism (AML/CTF) framework as they have a privileged position to detect suspicious activities.
The provisional agreement expands the list of obliged entities to new bodies. The new rules will cover most of the crypto sector, forcing all crypto-asset service providers (CASP) to conduct due diligence on their clients. This means they will have to verify facts and information about their customers, as well as report suspicious activity.
Retailers of luxury goods will also have to check the identity of customers and report suspicious transactions to the authorities. In this way, money laundering will be made more difficult, and this measure will also “fill” holes in national laws.
Also, the authorities should more strictly supervise the trading of cryptocurrencies and the banking affairs of the super-rich who have assets worth at least 50 million euros.
The aim is, as stated, among other things, to make it impossible for Russian oligarchs to circumvent EU sanctions. The new law must be formally approved by the European Parliament and member states.
Its application should be supervised by the authorities of the member states in coordination with the new European agency for the prevention of money laundering.
High-risk third countries
Obliged entities will be required to apply enhanced “due diligence” measures to occasional transactions and business relationships involving high-risk third countries whose shortcomings in their national anti-money laundering and counter-terrorism regimes make them a threat to the integrity of the EU’s internal market.
The Commission will make an assessment of the risk, based on the financial action task force listings (FATF, the international standard setter in anti-money laundering), Biznis Info writes.
E.Dz.
