EU is preparing a new anti-money laundering regulatory authority and stricter requirements
2 min readThe European Union is working to launch a new anti-money laundering agency at regional level, the main objectives of which will include increased reporting requirements for crypto transactions.
Authority for the fight against money laundering will be at the heart of the supervisory system
The Reuters report, citing leaked EU documents, claims that the European Commission is proposing the creation of a new Anti-Money Laundering Authority (AMLA) to act as the “centerpiece” of the supervisory system, including national regulators.
The report also states that European legislators are preparing new requirements for Virtual Asset Service Providers (VASPs), which set strict data collection standards for cryptocurrency parties. The data collected would also be made available to European regulators.
The report notes that transfers of cryptocurrencies do not currently fall within the scope of EU financial services legislation, stating:
“The lack of these rules leaves cryptocurrency holders free to money laundering and terrorist financing, as illegal money flows can be carried out by cryptocurrency transfers.”
The EU has come under pressure to step up its anti-money laundering guidelines after several Member States launched an investigation into Denmark’s largest bank, Danske Bank, into suspicious transactions worth more than € 200 billion that flowed through its small Estonian subsidiary between 2007 and 2015.
In the absence of a supranational regulatory body in charge of money laundering, the EU has always had to rely on national authorities to enforce its policies. “Money laundering, terrorist financing and organized crime remain important issues that need to be addressed at Union level,” the documents said.
“By directly supervising some of the most at-risk entities, the Authority shall contribute to the prevention of money laundering / terrorist financing incidents in the Union.”
Europe is not alone in trying to take action against cryptocurrencies. U.S. Sen. Elizabeth Warren urges the Securities and Exchange Commission to take action against “highly opaque and volatile” digital asset markets.
“While the demand for cryptocurrencies and the use of cryptocurrency exchanges is skyrocketing, the lack of common sense has left ordinary investors at the mercy of manipulators and fraudsters,” Warren said, adding:
“These regulatory gaps threaten consumers and investors and undermine the security of our financial markets.”
The British Office of Financial Ethics (FCA) has also tried in recent weeks to take action against the main cryptocurrency exchange Binance, which seems to have triggered a rising tide of local banks, which have stopped processing payments to and from the platform.
