Proposal for Stronger EU AML/CFT Rules
Published 12 October 2021
Category: Financial Regulation
On 21 July 2021, the European Commission presented a package of legislative proposals to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules. The legislative package follows in the wake of a number of prominent cases of alleged money laundering involving credit institutions in the EU.
The package consists of four legislative proposals:
- A regulation establishing a new EU AML/CFT authority.
- A regulation on AML/CFT.
- A sixth directive on AML/CFT replacing the existing directive (Directive 2015/849/EU).
- A revision of the regulation on information accompanying transfers of funds (Regulation 2015/847/EU).
At the heart of the legislative package is the new AML/CFT authority, which will establish a single integrated system of AML/CFT supervision across the EU. In particular, the new authority will directly supervise selected risky entities in the financial sector subject to AML/CFT requirements, monitor and coordinate national supervisors to ensure correct and consistent application of the AML/CFT rules in the member states, and support cooperation and information sharing among national financial intelligence units. The new AML/CFT authority will also have powers to draft regulatory and implementing technical standards, guidelines, and recommendations.
Another key point of the legislative package is the establishment of a single EU rule rulebook for AML/CFT, which will harmonise AML/CFT rules across the EU. Amongst others, the package contains directly applicable and more detailed rules on customer due diligence and beneficial ownership.
Additionally, the legislative package extends the AML/CFT rules to the entire crypto sector and ensures full traceability of crypto-asset transfers, and the Commission proposes to set up an EU-wide limit of EUR 10,000 to large cash payments making it harder to launder money.
Overall, the EU’s AML/CFT rules will be better suited to fight money laundering across the EU as well as terrorist financing as directly applicable rules will result in less regulatory divergences across member states which together with strengthened supervision at EU level and better coordination between national supervisors will close loopholes.
Next step: The legislative package is currently being discussed by the European Parliament and Council. The Commission expects that the new AML/CFT authority will be established on 1 January 2023 and fully operational in 2024.
Tags: KYC / AML
Also tagged ‘KYC / AML’
The Danish FSA (Finanstilsynet) Strengthens Supervision within Anti-money Laundering and Counter Terrorist Financing
The Danish FSA has announced that they are strengthening their supervisory activities within anti-money laundering and counter terrorist financing by implementing a number of new measures.KYC / AML
Proposal to Increase Certain Requirements for Managers under the AIFM and AML Act Published for Consultation
On 28 August 2019 the Danish FSA (in Danish: Finanstilsynet) published for consultation a draft proposal to change, among others, the Danish AIFM Act and the Danish AML Act.ComplianceDanish RegulationKYC / AMLWhistleblowing
On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
The European Parliament has passed the Corporate Sustainability Reporting Directive (“CSRD”). CSRD replaces the Non-Financial Reporting Directive (“NFRD”), and introduces higher requirements of more detailed reporting, and a mandatory EU sustainability reporting standard.ComplianceSustainability
The European Commission has proposed a prohibition on making products made with forced labour available on the EU market as well as exporting such products from EU. The proposal shall be seen in connection with the proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) adopted by the European Commission in February.
Invest Europe has published a set of ESG reporting guidelines with the aim of providing user-friendly and advanced guidelines on sustainability reporting within the European private capital sector.Sustainability
The Swedish Finansinspektionen has reviewed 30 Swedish-registered UCITS- and special funds with sustainable investment as their goal (SFDR article 9 funds). Finansinspektionen analyzed how fund managers met the requirements for providing sustainability-related information to investors.Sustainability
On 6 September 2021, The EU Commission amended the EU delegated regulation for the presentation of the Key Information Document (“KID”).KID / PRIIPS
Invest Europe has published a comprehensive members guide on EU ESG reporting requirements for fund managers to clarify grey areas that exist around the day-to-day application of the regulation.ComplianceDisclosure RequirementsSustainability