The European Parliament has voted to adopt a package of laws aimed at strengthening the EU’s Anti-Money Laundering (AML) and counter-terrorist financing framework, with a significant focus on the cryptocurrency sector.
The new regulations will implement enhanced due diligence measures and comprehensive checks on customers’ identities. Obliged entities, including banks and cryptocurrency asset managers, are required to report any suspicious activities to Financial Intelligence Units (FIUs) or other relevant authorities, reflecting an increased level of scrutiny within the cryptocurrency industry.
Under this legislation, FIUs will receive expanded powers to analyze and identify instances of money laundering and terrorist financing, as well as the authority to suspend suspicious transactions.
To oversee the enforcement of these new rules, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be established in Frankfurt. The AMLA will supervise the most high-risk financial entities, intervene in cases of supervisory failures, serve as a central hub for coordination among supervisors, and mediate disputes. Additionally, it will oversee the implementation of targeted financial sanctions.
This legislative package includes the sixth AML directive, the EU’s “single rulebook” regulation, and the AMLA regulation.
Moreover, individuals with a “legitimate interest,” such as journalists, civil organizations, and relevant authorities, will be granted “immediate, unfiltered, direct, and free access” to beneficial ownership information stored in national registries, dating back at least five years.
The legislation will also introduce enhanced vigilance for ultra-wealthy individuals (defined as those with total wealth of at least €50 million, excluding their primary residence), establish an EU-wide limit of €10,000 on cash payments (except for transactions between private individuals in a non-professional context), and implement measures to ensure compliance with targeted financial sanctions and prevent circumventing them.
Additionally, top-tier football clubs will be required to verify their customers’ identities, monitor transactions, and report any suspicious activities to FIUs for high-value transactions starting in 2029.
Ilya Brovin, chief growth officer at Sumsub, remarked, “The EU’s latest AMLR regulations are a welcome response to the advantages that technology is offering criminals. It brings us closer to achieving the safe and transparent cryptocurrency industry we all aspire to, which is commendable.”