Anti-money laundering and terrorism financing: Commission proposes legislative overhaul and new EU authority
The European Commission has presented a legislative proposal to amend the EU’s rules on anti-money laundering and countering terrorism financing (AML/CFT) and to create a new EU authority to fight money laundering.
Specifically, the proposals concerning the new legal framework include:
- A new Regulation on AML/CFT, containing directly-applicable rules, including in the areas of Customer Due Diligence and Beneficial Ownership;
- A sixth Directive on AML/CFT (‘AMLD6’), replacing the existing Directive 2015/849, containing rules on national supervisors and Financial Intelligence Units in Member States;
- A revision of the 2015 Regulation on Transfers of Funds to trace transfers of crypto-assets (Regulation 2015/847).
In addition to this, the Commission has made public its proposal to create a new Anti-Money Laundering Authority, which is intended to be the central authority coordinating national bodies to ensure the private sector correctly and consistently applies EU rules. It is deemed as ‘essential’ by the Commission to address the current shortcomings in AML/CFT supervision, as it is also intended to have powers to draft regulatory and implementing technical standards, guidelines and recommendations within the scope of its tasks
The new package comes less than a month after the European Court of Auditors published a special report concluding that action at the EU-level to combat money laundering and terrorism financing has significant institutional weaknesses, and that the EU’s oversight framework lacks a coherent approach and is poorly coordinated. In May 2020, the Commission presented an Action Plan which already included several of the aspects it is now seeking to implement.
Read the Commission’s press release here.